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earnings insurance

A type of business interruption insurance that uses a monthly limit on loss recovery in lieu of a coinsurance clause. The declarations show both a total limit of insurance and the portion of that total limit (expressed as a fraction: one-third, one-quarter, etc.) applicable to loss in each month following the direct damage loss. The monthly limit of indemnity coverage option in the Insurance Services Office, Inc. (ISO), business income coverage forms approximates the coverage provided under an earnings insurance form.

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