Business income insurance
covers business earnings in the event of an
interruptive loss. The ISO forms state that:
coverage is provided
for net income (net profit or loss before income
taxes) earned or incurred. Coverage is also
provided to continue normal operating expenses
incurred, including payroll
Think Profit and Loss
statement.
Tip.
Use a worksheet to determine coverage.
A business income
worksheet establishes coverage amounts of business
interruption insurance. This establishes dollar
amounts of coverage with no uncertainty. Involve
your accountant in preparing a worksheet.
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