Page 330 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

inadvertently omitted and therefore uninsured is eliminated.
Again the problem associated with the periodical review of the
standing charges does not exist.

New business clause

Profits insurance is sometimes effected on new business for which
past annual results would not be available for comparison in case of
loss in the first twelve months. This situation is met by addition of the
clause.

Revenue policies

n Revenue policies are appropriate for cases where the undertaking
provides a service as opposed to a manufacturing business where
the raw material (variable charge) would be the biggest single
item in the accounts.

n These policies are used for Clubs, Hotels, Private Schools, Private
Hospitals and Nursing Homes, etc.

n The policy broadly follows the pattern of the turnover policy but
'turnover' is replaced by 'gross revenue' which is defined in the
policy as "the money paid or payable to the insured for services
rendered in the course of the business at the premises"

Gross fees policy

n This policy is suitable for professional persons such as solicitors,
chartered accountants etc.

n The policy is similar to the Revenue Policy but with additional
items of coverage.

n The gross fees is defined the policy as "the money paid or payable

Sashi Publications - www.sashipublications.com 343

Copyright@ The Insurance Times. 09883398055 / 09883380339