BMC Associates says Replied on 5th September,2026 06:09 AM

In loss of profit / consequential loss insurance, standing charges are fixed expenses that continue even when the business is interrupted due to an insured event. 1. Insured Standing Charges These are the fixed expenses that are specifically covered by the insurance policy. Examples include: Rent and rates Salaries of permanent staff Interest on loans Audit fees Insurance premiums Depreciation, where covered by the policy To identify them, check the policy schedule and list the fixed expenses for which the insurer has agreed to provide coverage. 2. Uninsured Standing Charges These are fixed expenses that continue during the interruption but are not covered under the policy. They are generally excluded from the calculation of the insured amount. Simple example: Suppose total standing charges are ₹10 lakh, of which ₹7 lakh are covered by the policy. Insured standing charges = ₹7 lakh Uninsured standing charges = ₹3 lakh So, the key is to read the policy conditions and classify each standing charge as covered or excluded rather than assuming that every fixed expense is insured. For assistance with accounting, audit, and financial calculations, businesses can consult experienced chartered accountant firms in gurgaon, a qualified chartered accountant gurgaon, a reliable ca firm in gurgaon, or a professional ca in gurgaon.