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Consequential
Loss/Business Interruption
Whilst the fire policy
protects the capital assets of your business like buildings, plant and
stock, the full effects of fire cannot be measured solely in terms of
material damage - your trading will also suffer and overhead charges
will continue and must be paid out of reduced income.
A consequential loss
policy (which is issued in conjunction with a fire policy) covers loss
arising from interruption to the business caused by fire, lightning,
explosion and other related perils, known also as a Business
Interruption policy, it pays for :-
- Extra Expenses incurred
to minimize dislocation and restore normal trading conditions as soon
as possible;
- Overheads which continue
and must be met despite interference with trading;
- Wages/Payroll of
employees who are retained during the period of interference;
- Net Profit lost.
Indemnity Period -
the period of time, selected by the Insured, as being the longest
period during which the business could be affected as the result of
loss.
Sum Insured -
the sum to be insured is based initially on the annual gross profit or
other insurable earnings of the business, extracted from last year’s
accounts or the budgeted accounts for the current year.
Main exclusions
- War and warlike
perils/Terrorism
- Radioactivity and
nuclear risks
- Loss occasioned by or
order of any Public Authority.
- Subterranean Fire
- The burning, whether
accidental or otherwise, of forests, bush, prairie, pampas or jungle
and the clearing of lands by fire.
- Damage to property
occasioned by its own fermentation, natural heating or spontaneous
combustion or by its undergoing any heating or drying process.
 Download
the proposal form.
 Get in
touch with us here.
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