Insurance
Business Interruption Claim — Loss of Profit
Paying a business interruption claim for lost profits following a fire at the insured's premises.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Outstanding Claims Reserve — BI | Liability (-) | 80,000.00 | - |
| Cash / Bank (BI Payment) | Asset (-) | - | 80,000.00 |
💡 Accountant's Note
BI claims compensate the insured for lost gross profit and increased cost of working during the indemnity period. They are complex to settle as they require detailed financial analysis of the insured's accounts.
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