Covered Expense

What Does Covered Expense Mean?

Covered expenses are costs that apply toward the deductible or are eligible for reimbursement under the terms of the insurance policy.

Insuranceopedia Explains Covered Expense

For example, if a trucking company needs to repair the windshield of one of its trucks because a branch fell on it, this expense would apply to the deductible or be reimbursed, provided that the specific automobile insurance policy covers this type of damage. If the insurance company does not include this peril in its coverage, the trucking company would need to pay for the repair out of pocket.

Glass damage from a falling branch is usually handled under comprehensive coverage rather than collision, so it’s worth checking whether car insurance covers a cracked windshield before assuming the repair will be reimbursed. Fleet owners often compare commercial trucking insurance options for this reason, since exclusions on a standard auto policy can leave the business paying the full cost.