What does Gross Profits Insurance mean? Read on to discover the definition & meaning of the term Gross Profits Insurance - to help you better understand the language used in insurance policies.
Gross Profits Insurance
A type of business interruption coverage in widespread use in Canada and the United Kingdom. Gross profits insurance differs from gross earnings insurance in two respects: the determination of the loss payment amount and the indemnity period. Loss payment is based on the amount of sales during the same period in the year preceding the date of direct damage loss. The indemnity period is the time it takes for the insured's profit to recover, subject to a maximum of 12 months.
We hope the you have a better understanding of the meaning of Gross Profits Insurance.