Page 311 - Fire Insurance Ebook IC 57

The Insurance Times

The total of net profit and the amount of insured
standing charges is the gross profit and the sum
insured under the policy.
(iv) This figure is then to be adjusted, usually upwards,
to reflect the projected future

(e) Standing charges with examples - Standing
Charges: These are overhead expenses such as
salaries, taxes, interest, etc which have to be
incurred in spite of stoppage of business. These are
the fixed expenses in amount, irrespective of the
volume of business transacted or which cannot be
reduced in direct proportion to any reduction of
business. E.g, Duties &Taxes, Bank Interests,
Salaries to Permanent Staffs.

(f) Specification - It is an important part of the policy,
and provides for :

(i) Items insured under the policy and the relative sums
insured, e.g, Gross Profit, Wages, Auditor's Fees.

(ii) Definitions and

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