Identify the correct statement about payroll endorsements in a business income coverage policy.
A)This option negates the coinsurance provision of business income coverage.
B)An organization with stable earnings and expectations of a short period of restoration would find this option worthwhile.
C)This option limits the duration of coverage to 120 days or until the limit is reached, whichever comes first.
D)This option allows the insured to deduct some or all payroll expenses from the value of operating expenses before calculating the coinsurance requirement.
E)This option includes payroll from covered expenses.

Question

Quizplus · Accepted Answer

The payroll endorsement allows the insured to deduct payroll expenses from operating expenses when calculating the coinsurance requirement, which can be beneficial for businesses with significant payroll costs.

Identify the Correct Statement About Payroll Endorsements in a Business