Consequential Loss/Business Interruption Insurance

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.

• 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 Consequential Loss/Business Interruption Proposal Form.