Business Income Worksheet - Schools
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FOOTNOTES:
(14): Ordinary payroll expenses include payroll, employee benefits if directly related to payroll, FICA and Medicare payments, union dues, and
Workers Compensation premiums.
Some points to consider in deciding whether to exclude or limit Ordinary (i.e. other than officers, deans, department heads, full-time faculty and
coaches and employees under contract):
- Would you lay off all your other employees in the event of a short interruption?
- Could you get them back when you re-open for business or would they have gone elsewhere?
- Do you have skilled or specialized personnel?
(16): Period of Restoration – Assume the worst possible situation, such as devastating fire or explosion and the sprinkler system is impaired or there
is heavy smoke damage requiring excessive decontamination, OR a catastrophe peril such as a tornado or hurricane occurs and s
everely
damages your property. Your ability to resume normal operations may be impaired by one or more of the following:
1. Delays in obtaining Architectural and Engineering Plans, Zoning Variances, Building Permits, or approvals from Certification Boards.
2. Climactic conditions that would prohibit or postpone repairs or rebuilding.
3. Cause and origins investigations and debris removal can be delayed.
4. You have unique, specialized, customized or imported machinery or equipment.
5. The EPA and other regulatory agencies can create delays.
(19): After you are able to resume normal operations, how long will it take to get back to pre-loss income levels? Consideration should be given to
loss of tuition for the following school year.
VALUATION OPTIONS:
COINSURANCE: Business Income is subject to a coinsurance unless Agreed Value option is selected. Coinsurance requires you to carry a
minimum amount of insurance. This minimum amount is an agreed upon percentage of your business income exposure for the 12 months
following the effective date of your insurance policy. If at the time of loss, the amount of your Business Income limit is less than this
amount, the amount we pay for the loss will be reduced. Subject to your amount of insurance, the most we will pay will be in the proportion
of your covered loss determined by dividing the Business Income Limit by the minimum amount of insurance you were required to carry.
AGREED VALUE: Is an optional coverage that suspends, but does NOT eliminate the Coinsurance provision. A new worksheet must be
submitted at the end of each 12 month policy period. Failure to submit a signed current worksheet will automatically reinstate the
Coinsurance Provision for the period going forward.
Consult your agent or brok
er to help you determine an appropriate Coinsurance percentage to be stated on your policy. One possible
method to determine coinsurance percentage is to divide li
ne 18., by the sum of lines 15., and 17., e.g. Line 18. = 8,000,000 Line 15. + 17 =
$10,000,000. $8,
000,000 ÷ $10,000,000 = 80%
Your valid options for Coinsurance percentage are shown below. A coinsurance percentage must be selected regardless which option you
Coinsurance Option: 50% 60% 70% 80% 90% 100%
Agreed Value Option: 50% 60% 70% 80% 90% 100%
DO NOT REDUCE LINE 21. ABOVE BY THE COINSURANCE PERCENTAGE.
choose; Coinsurance option or Agreed Value option. Please check which option and coinsurance percentage you desire:
