Posts Tagged ‘Gross Profit’

The insurance under this item is limited to loss of  Gross Profit due to : Reduction is turnover and (b) Increase in cost of working and the amount payable as indemnity thereunder shall be :           In respect of  Reduction in Turnover :           The sum produced by applying the rate ... Full story

The insurance under this item is limited to loss of  Gross Profit due to : A. Reduction is turnover and (b) Increase in cost of working and the amount payable as  indemnity thereunder shall be : In respect of  Reduction in Turnover : The sum produced by applying the rate of gross  profit to the amount ... Full story

Should the Business Interruption risk be insured on a Gross Profit or Gross Revenue basis? We are often presented with this issue.   The answer requires an understanding of "Gross Profit" and "Gross Revenue".    Gross Profit is just a level of earnings.  This level varies between accountants and industries.  For insurance purposes only one level of Gross Profit is relevant.... that which is defined in the insurance policy.    Full story