Paul-Caib 2-Ch 7

Front 1

Income

Back 1

Includes all monies from sales or services rendered by a business. (Reference pg 7-6)

Front 2

Fixed expense

Back 2

Are those expenses that continue during the period of an interruption. (Reference pg 7-6)

Front 3

Semi-variable expenses

Back 3

Are those expenses which may or may not continue during the period of an interruption. (Reference pg 7-6)

Front 4

Gross profit

Back 4

Is the sum produced by adding to the "net profit" the amount of the "insured standing charges"; see Profits Endorsement Form, IBC 4030, definitions, item 4(a).

Note: Technically, "gross earnings" under the Gross Earnings Endorsement Form (IBC 4029) has its own definition and is not the same as the "gross profit" amount insured by the Profits Form. Under the Gross Earnings Form, "gross earnings" is the amount arrived at after subtracting the cost of merchandise and other allowable deductions from the business's total net sales. (Reference pg 7-7)

Front 5

Net profit

Back 5

Is the Gross profit minus all other expenses, earned by the business. (Reference pg 7-7)

Front 6

Actual loss sustained

Back 6

The measure of recovery under the Gross Earnings Form - refers to the amount the business would actually have earned had the loss not occurred. (Reference pg 7-15)

Front 7

Ordinary payroll expense

Back 7

Is the entire payroll expense for all employees of the Insured, except officers, executives, department managers, employees under contract and other important employees whose services would not be dispensed with should the business be interfered or interrupted. (Reference pg 7-17)

Front 8

Contributing Properties

Back 8

The manufacturer or supplier upon whom the Insured depends for materials or goods. (Reference pg 7-35)

Front 9

Recipient properties

Back 9

The customer(s) who the insured depends upon to purchase it's products. (Reference pg 7-35)

Front 10

Magnet properties

Back 10

Businesses which attract a large number of customers to an area. (Reference pg 7-35)