What are Gross Receipts?
On many insurance applications, you
will see a questions about about your gross receipts. The term
gross receipts means the amount of money that your business brings in
prior to paying your expenses. For example, if all of your
billings and sales bring in $500,000 a year, then your gross receipts
Your gross receipts are often used in
the calculation of commercial insurance premiums. Smaller businesses may
find that their premiums are not affected much by their gross receipts
because they may fall under the minimum premium that needs to be
Gross receipts are not the amount of
profit you make. If your gross receipts are less than you expenses
and expenditures, then you may have a loss at the end of the year.
What if I need to
insure business personal property away from my office?
*NOTE: This is not an official definition, please quote a
financial professional for more information. The author is not an
accountant, not a financial planning professional.. Please check with your state and local jurisdiction for
rules on operating a business. Coverage options vary by business,
location, and are all subject to underwriting approval. The information is purely for
educational purposes and not quoted from any legal source.
today for more information on obtaining a quote.