Expediting Expense
Expediting expense coverage pays for additional costs incurred to speed up the replacement or repair of damaged property to minimize business interruption. This includes rush shipping, overtime labor, and express delivery charges that exceed normal replacement costs.
Example
“After a fire damaged their main server, the accounting firm's expediting expense coverage paid for overnight shipping and weekend installation to restore their systems within 48 hours instead of two weeks.”
Memory Tip
Think 'Expediting = Express Delivery' - this coverage pays the premium for getting things done faster than normal after a loss.
Why It Matters
The extra cost of expediting repairs or replacements is often much less than the revenue lost from extended business closure. This coverage can mean the difference between a quick recovery and losing customers permanently to competitors during a prolonged shutdown.
Common Misconception
Some business owners think their regular property insurance automatically covers expediting expenses, or that these costs are always minimal. In reality, expediting can cost 50-200% more than standard replacement, and basic property policies typically don't include this coverage.
In Practice
A restaurant's main freezer fails, spoiling $8,000 worth of food. A replacement freezer normally costs $12,000 with 2-week delivery, but expedited delivery and weekend installation costs $18,000 total. The expediting expense coverage pays the extra $6,000, allowing the restaurant to reopen in 3 days instead of losing an estimated $25,000 in revenue from a 2-week closure.
Etymology
From the Latin 'expeditus' meaning 'to free from obstacles,' the insurance term developed as businesses needed coverage for extra costs to quickly resume operations after losses.
Common Misspellings
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Related Terms
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See Also
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