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Fire Insurance Terminologies
Gross Profit
Gross profit is the profit a company makes after deducting all costs associated with manufacturing and selling its products or services. Deducting the cost of goods sold (COGS) from total sales yields gross profit
Gross Profit is the sum of Net Profit and Insured Standing Charges
Net Profit
Net profit is the total earnings of the company after deducting all expenses. The expenses deducted include the costs of regular business operations, depreciation and taxes
Frequently Asked Questions
What are standing charges?
The insured standing charges are the fixed expenses (salaries, rent, taxes, interest, etc.) that an insured might incur as a result of decreased turnover. Before selling the policy, an insurer will receive details on the insured's fixed expenses
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