What it does
CP 15 34 covers the necessary Extra Expense the insured incurs due to direct physical loss at the premises of a "dependent property" described in the Schedule, caused by a Covered Cause of Loss. Dependent property types are contributing, recipient, manufacturing and leader locations, each with its own scheduled limit. Optional unnamed secondary contributing and secondary recipient locations may also be covered.
Key provisions
- It covers only extra expense, not lost income. Pair it with CP 15 08 or CP 15 09 when income would also be lost.
- No coverage when the only damage at the dependent property is to electronic data.
- Coverage follows the policy's Causes of Loss form, so perils excluded at the insured's premises are also excluded at the dependent property.
Who needs it
Operations that would keep running at higher cost if a supplier failed, for example by buying from a more expensive alternate supplier or air-freighting parts. Service businesses that rely on an outside facility are another example.
Quoting and selling notes
- Ask the client to estimate the extra cost per month of sourcing elsewhere and how long it would take to qualify a replacement supplier.
- For dependent properties outside the policy territory, see CP 15 02.
