INSR 441 Ch. 4 Key Terms

Insurance that covers the reduction in an organizations income when operations are interrupted by damage by damage to property caused by a cavered peril.

The differene between revenues and expenses.

Net income that results when revenues exxceed expenses.

Net income that results when exxpenses exceed revenues

Expenses that continue to be incurred during a business interruption

Expenses that will not continue during a business interruption

Expenses that an organization incures to mitigate the effects of a business interrution

Form that covers both business income and extra expense losses

Sum of 1. net profit or loss that would have been earned or incurred if the suspension had not occured and 2. normal operating expenses, including payroll, that continue during the suspension

Coverage for necassary expenses incurred by the named insured to reduce business income loss

Coverage for loss of business income that results when access to the insureds premisis is prohibited by civil authority because of damage to property other that insureds

The largest loss that an insured is likely to sustain

Option that deletes the coinsurance clause while limiting loss payment to the lesser of 1. the amount of loss sustained during the 120 days following the beginning of the period of restoration or 2. the policy limit

Option that deletes the coinsurance clause while limiting the amount recoverable during any month of business interruption to a stipulated fraction of the insurance amount

Option that suspends the coinsurance clause as long as the insured carries an amount of business insurance that is equal to the value agreed on by the policyholder and the insurer