88 – Insurance Other Than Buildings & Improvements

Overhead Expenses

 

Synopsis

Account 88

Debits

Credits

  1. All insurance premiums not otherwise provided in the Chart of Accounts.

 

 

Remarks:

Premiums for Workmen's Compensation should be charged to Employee Benefits (Account 28).  Premiums on life insurance (wherein the retailer is beneficiary) should be charged to Deductions to Income – Other (Account 855).

Prepaid insurance premiums should be expensed over the life of the policy.  Accrued insurance should be accrued and expensed monthly.

Premiums charges to this account include such items as: merchandise inventories; contents and equipment; fire and theft (except buildings); garage liability; fidelity bonds on employees; bodily injury and property damage; public liability; burglary; business interruption; and other classifications.

All insurance policies should be reviewed periodically for duplicate or unneeded coverage.