Definition - What does Covered Expense mean?
Covered expenses are expenses that would apply to the deductible or be reimbursed according to the terms of the insurance policy.
Insuranceopedia explains Covered Expense
For example, a trucking company has to repair the windshield on one of its trucks because a branch fell on it. This expense would apply to the deductible or be reimbursed as long as its particular automobile insurance policy covered this type of damage. If the insurance company did not include this peril in its coverage, the trucking company would have to pay for it out of pocket.