Why does my business insurer stipulation my profit and loss statement?
1, to establish a value of the business.
2. To determine if it is a ligitimate business or a "hobby business."
3. To determine the kind of business it in actual fact is. Different businesses entail different types of risks.
This is expected for business interuption and extra expense coverage. Business interuption and extra expense coverage replace lost revenue or profits, cover certain overhead expenses, and pay extra expenses to maintain you operating. The insurer wants to know just what munificent of risk they are taking in offering this coverage to you - and they want to be able to wage the claim quickly and fairly if your business is shut down due to a fire (for example). This is usually righteous coverage to have.
They also ask your revenues as a basis of setting your overall premium. A business next to revenues of $50,000 is in a different category than a business earning $5,000,000.
I hope that ease your concern!
Its part of the underwrite evaluation.
He's trying to put your case into a expediency category.
They all do that, you and I are just numbers to them.
Wait till you own a claim, the dragging feet will smell.
Answers: For one to find out what you company is worth! It's like insuring a car, they aren't going to endow with you 10,000 for a 3,000 car! (they generally appropriate pics in the begining and end)
Also to make sure you are not a risk!