What does Gross Earnings Coverage mean? Read on to discover the definition & meaning of the term Gross Earnings Coverage - to help you better understand the language used in insurance policies.
Gross Earnings Coverage
A type of business interruption insurance covering the insured's reduction in gross earnings suffered as a result of a direct damage loss. For a nonmanufacturer, gross earnings are essentially total sales less the cost of goods sold. For a manufacturer, gross earnings are the sales value of production, less cost of raw stock from which the production is derived. Included in this coverage are profits, continuing expenses, management payroll, and ordinary payroll.
We hope the you have a better understanding of the meaning of Gross Earnings Coverage.