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Flashcards in Commercial Chp 3 Deck (8)
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1

Buisness income insurance

Insurance that covers the reduction in an organization's income when operations are interrupted by damage to property caused by a covered peril.

2

Net income

The difference between revenues (such as money recieved for goods or services) and expenses (such as money paid for merchandise, rent, and insurance).

3

Profit

Net income that results when revenues exceed expenses.

4

Net loss

Net income that results when expenses exceed revenues.

5

Continuing expenses

Expenses that continue to be incurred during a buisness interruption.

6

Noncontinuing expenses

Expenses that will not continue durring business interruption.

7

Extra expenses

Expenses, in addition to ordinary exenses, that an organization incurs to mitigate the effects of a business interruption.

8

Probable maximum loss (PML)

The largest loss that an insured is likely to sustain.