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11 Cards in this Set
- Front
- Back
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What are three reasons for the failure to sell business interruption insurance? |
-Perceived as too technical -Lack of consumer knowledge |
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What causes can be the source of business interruption losses? Name 3 |
-Failure or breakdown of public utilities -Transportation related accident |
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What are ways to get back into business after suffering a loss? |
-Use capital reserves -Bank loan -Raise prices -Business interruption insurance! |
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What characteristics are common to both Gross Earnings and Gross profits forms? |
-Insure against same perils as property forms -Are contracts of indemnity -Period of indemnity will continue beyond expiry of policy |
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What is income? |
All money from sales or services rendered by a business. |
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What is net profit? |
Gross profit less operating costs = net profit |
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What is gross profit? |
The net profit add the insured standing charges. |
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What is the difference between the periods of indemnity between gross earnings and profits form? |
Under gross earnings, as soon as the property is repaired the period of indemnity is over. Under profits form, the period of indemnity continues until income is restored to pre-loss levels. |
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What are three fixed expenses? |
Management salaries |
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What determines whether a business needs gross earnings or profits form business interruption insurance? |
The nature of the business and types of perils most likely to befall it. |
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How to determine the amount of business interruption coverage needed? |
Easy peasy! Complete the worksheet and allow for future trends. |
