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 is essentially total sales less the cost of goods sold. For a
manufacturer, gross earnings is 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.
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