Assuming things are similar to the U.S Time Element " business income and extra expense coverage can be purchased several ways. It be purchased with a flat limit for a specific number of months, ( monthly limitation ) or in some cases what is called 12 months ALS meaning actual loss sustained. Often times in both cases " ordinary payroll is lined to 60 or 90 days. Based on experience here U S) in areas that are prone to wind and water the latter would be very expensive. Without any facts it would appear to me that they are trying to extend the time period that they can pay employees with the limitation they have. The monthly limitation is extended if you don't spend the full allocation. Its not like Divi could collect the payroll expense from the company and pocket it. They must realize and provide documentation for the expense to be reimbursed.