Jan 27, 2009 – Knowing this allows the insured to accomplish two tasks: 1) pick the correct coinsurance; and 2) ultimately decide on the limit of business income coverage to purchase (again, the amount subject to loss is a function of the coinsurance percentage and the percentage a function of time).

Business Income Coinsurance Examples. Business Income Exposure for 12 Months (Taken from J.1. on sample worksheet). $1,375,000. “Maximum Coinsurance Percentage”. Estimated Period of Restoration / 12. “Estimated Loss of Income”. Maximum Coinsurance Percentage X 12-month. Business Income Exposure (“J.1.

The annual business income value is $8 million with an 80 percent coinsurance clause. The insured limit is $6.4 million, excludes ordinary payroll, and is subject to a one daily average value (ADV) deductible.

Some people think of coinsurance as a “deductible”, but it is really a pricing and claims paying mechanism. This provision requires the business owner to insure a certain percentage of the replacement cost of property and a certain percentage of the. 100% (annual) business income. FOR EXAMPLE: 80% coinsurance for a …

that you would like to have answered. What does it mean if I insure my business income at 50% coinsurance? What is contingent business income exposure? What about a business income loss because of … business outage (period of restoration). For example, programming services not under contract, or painting services.