HOW SHOULD PAYROLL BE INSURED?
The only way to provide a company with all the flexibility possible is to insure Payroll 100%. If you intend to insure payroll fully, you can leave all those items that make up the definition of Payroll, as part of the Sum Insured for Insured Gross Profit. To do this, you do not select the Ordinary Payroll section on your Business Income Worksheet.
As has been previously stated, total flexibility is only achieved by insuring Payroll in full for the entire Period of Restoration.
If Ordinary Payroll is to be limited or excluded an amount typically representing the entire expense of payroll for all employees of an insured entity, except officers, executives, department managers and employees under contract is deducted from your Business Income Exposure and if applicable nominating a period of typically somewhere between 30 and 180 days.