Business Interruption Insurance

Loss of Profit or Consequential Loss or Business Interruption Insurance

Where a business premises is destroyed or damaged by fire, the resultant interruption to business may cause a disastrous trading loss, which an ordinary fire policy does not cover.

The Consequential Loss Policy is designed to provide indemnity against trading losses as follows:

  • Continuing overhead expenses which have to be met out of reduced earnings.
  • Net profit loss due to a reduction in the volume of trading, wages of key employees although not gainfully employed during the interruption period, but whose services have to be retained until business returns to normal;
  • Also wages in lieu of notice or redundancy payment to employees whose services are no longer required;
  • Additional working cost reasonably incurred in order to overcome or minimize the effect of the damage upon the premises.
  • In addition, where your business is dependent partly upon the continued existence of the premises of suppliers, customers or other persons or bodies from whom you receive services or facilities, the policy can be extended to cover loss resulting from damage by insured risk at such other premises.