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