Consequential Loss Insurance
This policy covers the lost income/profit which would have been achieved by the business if the interruption due to material damage had never happened.
This policy is ideal for, rentals, schools and colleges, professional firms such as estate agents, solicitors, accountants & doctors, manufacturing companies, storage companies and traders of stocks.
A property damage insurance policy such as a Fire or Industrial All Risks insurance provides coverage for the costs of repairing, reinstating or replacing damaged property. However, in the event of material damage or loss, such property policies do not cover the loss of profit or mounting work related costs resulting from an interruption in the business.
We know that an extended disruption due to more serious occurrences such as fire or flood can greatly affect your business. That is why we recommend you to take up Consequential Loss Insurance as it protects your business against financial loss following an interruption in your business due to a loss or damage covered under a property insurance policy.
Consequential Loss Insurance compensates you for lost income if your company has to vacate the premises due to any peril covered under your fire insurance policy, such as a fire, lightning. Consequential Loss Insurance covers the profits you would have earned, based on your financial records, had the disaster not occurred.
The policy also covers standing charges that continue even though business activities have come to a temporary halt.
What is covered?
To cover for the loss of gross profit due to reduction in turnover and additional expenses incurred in minimizing the loss of turnover due to an interruption to the insured business by:
- Explosion of gas used for domestic purposes only
- Special perils, which are similar to those, offered under the fire policy.