Our insured had to purchase a generator due to a severe storm in the area knocking out the transformer. Would the generator be covered as an extra expense due to the following policy language?
COVERAGE
- We will pay the actual and necessary “extra expense” you incur to avoid or minimize the suspension of business and to continue your business activities. Coverage applies when you sustain a direct physical loss or damage to property at the premises described on the Declarations, caused by or resulting from any Covered Cause Of Loss
- We will also pay the actual and necessary “extra expense” caused by the interruption of service to the described premises. The interruption must result from direct physical loss or damage by a Covered Cause Of Loss to: “dependent business premises,” “communication supply service,” “water supply service,” “power supply service” or “sewage treatment service” which provide service for a fee or charge to the premises described on the Declarations. Only the “extra expense” you incur after the service has been interrupted for 12 hours will be covered.
Wisconsin Subscriber
It is our opinion that if the business interruption was caused by a covered cause of loss and the generator was necessary to continue business activities and minimize the suspension of business, then yes, it would be covered extra expense after the service has been interrupted for 12 hours, per item 2. of the COVERAGE.