In order to more accurately capture the exposure of certain industry classes, Coalition is introducing a rating basis of Gross Profit and Net Revenue. When these industries are selected, the Coalition platform will prompt you to enter Gross Profit / Net Revenue to better capture this exposure.
This often occurs in industries where the value of inventory is very high compared to revenue. The example of an auto dealership helps us understand how Gross Revenue is an inflated view of the actual cyber exposure entailed. Auto dealerships often state their Gross Revenue as the total revenue calculated contemplating all the cars that are on the lot during a given time period. As these cars will not all be sold, Gross Profit / Net Revenue is a more accurate rating basis.
Gross Profit / Net Revenue can be calculated as the revenue less cost of goods sold or revenue net of the cost of the resold item.
Below is a partial list of industries where we use Gross Profit / Net Revenue as our ratings basis:
- Auto parts, equipment, and accessories
- Car dealership
- Boat dealer
- Motorcycle dealer
- Construction contractor
- Gas station
- Food distributor
- Healthcare distributor
- Exporter importer
- Retail distribution (wholesaler)
- Real estate management and development
- Trading companies and distributors
Don’t see what you’re looking for? Try typing in one of the most common industry keywords that apply - distribution and wholesaler. For more information on our underwriting, please see How do you underwrite my policy? or contact us.