Business Interruption Insurance
Main Forms

The main forms upon which most business interruption coverages are based upon are:

A. GROSS EARNINGS

1. There are two types of Gross Earnings Forms – Mercantile/Non-Manufacturing and Manufacturing.

2. They are intended to cover the repair period during which destroyed or damaged property is restored with due diligence and dispatch and provide coverage based on loss of sales or loss of sales value of production less variable costs and other saved costs.

B. PROFITS

3. The Profits Form provides coverage during which the results of the business are affected following a loss, rather than just the repair period.

4. The basis for the Profits Form is lost net profit plus continuing standing charges (expenses).

C. BUSINESS INCOME

5. Both the US and Canada carry Business Income Forms although the wording under each is different.

6. In essence, the intent of these forms is to provide combinations of the element of the Gross Earnings and Profits forms.

Need help in evaluating losses under these coverages?

We are available to evaluate and/or review your business interruption losses and what is covered under each of these policies. Though we are based in Vancouver, Canada, we travel around North America in our role as specialized business interruption insurance accountants. We can be reached at 604-688-9100 to review your problem or complete the following inquiry form and one of us will call you back.