What it does

CP 15 02 is the extra expense companion to CP 15 01. For dependent properties outside the coverage territory, it pays the necessary Extra Expense the insured incurs due to direct physical loss at the premises of a scheduled contributing or manufacturing location, and optionally secondary contributing locations. Examples are paying a domestic supplier's higher price or air freight. The Coverage Territory condition does not apply to this coverage.

Key provisions

• The Schedule lists locations and limits, separate from other limits in the policy.
• The Schedule designates the Causes of Loss form and any endorsements that apply to the foreign locations.
• No coverage when the only damage at the dependent property is to electronic data.

Quoting and selling notes

• Useful when the client can keep selling if it pays more for substitute goods, but would lose customers if it waited for the foreign supplier to rebuild.
• Combine with CP 15 01 if lost income is also likely.