Dual-basis payroll insurance,

Definition of Dual-basis payroll insurance:

1. Type of business interruption insurance policy that allows the insured to cover its payroll on both full and partial basis. For example, 100 percent of the payroll is covered for, say, 3 months and then the cover drops to, say, 33 percent of the payroll. This arrangement allows the insured to layoff the redundant staff but retain the key employees until the business recovers.