Common use of EXTRA EXPENSE Clause in Contracts

EXTRA EXPENSE. This insurance is extended to cover the necessary “extra expense” incurred by the Insured in order to resume as nearly as practicable, their “normal” business operations that have been interrupted as a direct result of “breakdown”. Coverage will commence with the occurrence of the “breakdown” and is not limited by the expiry date of this policy. The Insured shall exercise due diligence and dispatch to rebuild, repair or replace the lost or damaged property. This extension does not cover: (a) loss due to fines or damages for breach of contract for late or non-completion of orders or for any penalties of whatever nature; (b) any increase of loss caused by delays or loss of time due to the presence of strikers or other persons or to labour disturbances on or about the “premises” interfering with the rebuilding, repairing or replacing the property damaged or destroyed or the resumption or continuation of the Insured’s business; or (c) loss due to the suspension, lapse or cancellation of any lease or license, contract or order, which may affect the Insured's earnings after the period following any loss during which indemnity is payable.