RMI 3504 Chapter Notes - Chapter 3: Co-Insurance, Insurance Services Office, Multitenancy
25 Apr 2016
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Effect of business interruption of expenses: continuing expenses: expenses that continue to be incurred during a business interruption, non-continuing expenses: expenses that will not continue during a business interruption, continuing expenses. If business is interrupted for only a short time, many expenses will continue during the interruption. If a longer interruption of business occurs, many expenses can be reduced or eliminated. Continuing expenses can be, and ordinarily are, a significant part of business income losses: extra expenses. Extra expenses: expenses, in addition to ordinary expenses, that an organization incurs to mitigate the effects of a business interruption. Additional costs of overtime labor and overnight air shipment of repair parts. Rent at a similar warehouse and continuing operations within 2 weeks instead of shutting down completely for several months. They are considerably less than the income that would have been lost had such measures not been taken.
