USE AND OCCUPANCY INSURANCE 
Blanket Coinsurance Form, the average rate applicable, 
and the total premium cost. 
This table serves as an important feature of this 
Use and Occupancy Insurance Chart. By its use, it is 
possible to check the Basic Estimate as determined 
through the A-B-C Steps of Table 1. Table 1 arrives 
at the Basic Estimate through a process of elimination. 
Table 3 reverses this process and builds up an amount 
which must agree with the Basic Estimate produced 
*hrough the A-B-C Steps of Table 1. 
Table No. 3 
Column I—Opposite each item is entered the full annual 
charge or cost anticipated for the next ensuing year. 
The total of Column I should represent the full annual 
operating charges and expenses anticipated for the next 
ensuing year. Add to the total of Column I the esti- 
mated Net Profit (or deduct in case of a Loss) expected 
on the next fiscal year’s operations. It must be under- 
stood that this estimate might differ from the Net 
Profit (or Loss) as shown by the Profit and Loss State- 
ment, but, under Use and Occupancy insurance we are 
interested only in that portion of Net Profit (or Loss) 
which is produced through business operations, not 
extraneous sources. The result should equal ‘the 
Basic Estimate produced through the A-B-C Steps of 
Table 1. If it does not agree, all amounts entered in 
Tables 1 and 3 should be carefully checked, particular 
attention being given to the prospective increase or 
decrease entered under Step C3 of Table 1 and the 
expected estimated Net Profit (or Loss) as entered in 
the final steps of Table 3. 
Column II—While the amount of insurance required 
ander the Blanket Coinsurance form is based on full 
annual amounts of operating charges and expenses, 
whether or not they continue after an interruption of 
business, the amount for coverage under other forms is 
based on those operating charges and expenses which 
continue after an interruption. In fact, very few 
items of expense could be discontinued during a short 
business suspension, whereas many operating expenses 
would be discontinued during a prolonged total business 
suspension. It is recommended therefore that only 
those items (or portions thereof) which would be dis- 
continued during a short suspension be selected and 
entered under Column II of Table 3.