Consequential Loss (Fire) Insurance

Coverage Add-On Cover Exclusion

Overview

Disasters like Fire and special perils can put huge financial burden on any business. In case of a major loss caused by fire and special perils, there could be an interruption in business operation leading to reduction in turnover finally resulting in possible loss of profits. However, standing or fixed charges continue to accrue regardless of whether there is any production or not. Such loss cannot be covered under fire policy. This Policy can be taken only in conjunction with a policy that insures your assets (such as Standard Fire and Special Perils policy), and triggers only if the loss is admissible under that policy.

Coverage

  • Loss of net profit due to reduction in turnover which results from a stoppage of business following loss or damage to your insured property
  • Standing charges or fixed charges which continue to accrue in spite of stoppage of business
  • Increased Cost of Working incurred in minimising that loss of Gross Profit

Add-On Cover

Further, on payment of additional premium, the following additional coverage can be opted:

  • Wages
  • Lay-off and Retrenchment Compensation and Notice Wages Liability
  • Auditor’s Fees
  • Supplier’s Extension
  • Customer’s Extension
  • Public Utilities Extension
  • Terrorism

Exclusion

  • Loss of gross profits, which is not consequent upon property damage due to an insured peril
  • Loss due to material damage to property
  • Difference between value of stock at the time of fire and the value at the time of subsequent replacement
  • Deterioration of undamaged stock after fire
  • Cost of preparing fire and loss of profits claim
  • third party claims and loss of goodwill