Consequential Loss

Commercial Line Insurance

Key benefits - Covers against the business loss due to fire

Key benefits - Covers against the business loss due to fire

This policy offers protection against the loss of gross profits that your business suffers as a result of a claim under your Fire Policy. This policy can be taken only in conjunction with a Standard Fire Insurance Policy.

What is meant by Gross Profit and how is it calculated?

Your gross profit should represent the net trading profit plus insured standing charges (fixed charges). The standing charges which are to be insured have to be specified.

Gross profit can also be insured on one of the following basis

  • Turnover basis
  • Output basis
  • Difference basis
  • Revenue basis

For a more comprehensive cover, you have the option to select the following add-ons at an additional premium.

  • Accidental failure of public electricity/gas/water supply
  • Damage to customer's premises due to perils covered under Fire Insurance Policy
  • Damage to supplier's premises due to perils covered under Fire Insurance Policy

Main Exclusions

  • Cost of preparation of fire and consequential loss claims
  • Litigation costs connected with fire or consequential loss claims generally
  • Third party claims
  • Failure to recover book debts owing to destruction of records
  • Loss of goodwill
  • Loss of market
  • Fines and penalties payable due to delayed fulfilment or cancellation of sale/service contract
  • War, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared or not), civil war
  • Mutiny, civil commotion assuming the proportion of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, and military usurped power
  • Nuclear power reactions and radiations

This is not an exhaustive list.

For further details and quotation, talk to us today at 1800-103-2292 (Toll free) or visit one of branches