Explain Why There Is a Coinsurance Clause Applied to the Building

question 21

Essay

Explain why there is a coinsurance clause applied to the building structures. How does it work?

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Definitions:

Norms of Business

The accepted standards and practices that guide behavior in the business world.

Government Takeover

The acquisition of control over a company or sector by the government, potentially involving nationalization or requisition of private assets.

Per-Unit Costs

The expense incurred to produce, acquire, or sell one unit of a product or service, used in calculating profitability and pricing strategies.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.