Which is NOT covered under the accounts receivable coverage form?

The accounts receivable coverage form is designed to protect a business from losses related to accounts receivable, particularly those that arise after experiencing a covered loss, such as damage to property that results in the inability to collect outstanding invoices.

When considering the elements of this coverage, loan principal amounts are not included because the coverage focuses on the income loss from customers who have not paid their bills, rather than on debts owed by the business itself. The policy typically covers the uncollectible sums due to loss, the necessary expenses incurred to reestablish records, and even interest on loans related to those uncollectible amounts, as these directly relate to the business's accounts receivable and the impact of a loss.

Loan principal amounts, however, represent the actual debt of the business, rather than the accounts receivable that the coverage is intended to protect. Since the accounts receivable coverage is not meant to insure against the repayment of debt, this is the reason why it is not covered under the accounts receivable coverage form.