Consequential Loss (Fire) Insurance
covers the financial impact of business interruptions and lost income due to fire damage
Consequential Loss (Fire) Insurance
All the relations give happiness to the soul, bring the butterflies in the stomach, and smile on your face. Life becomes easier and better than any time before, but what happens when they leave and the damage behind. The suffering of attachment, love, and care, and then you need to heal your scars on your own!
Similar is the case with general policies. They only give insurance for the current damage, to physical damage to your property by insured perils and at maximum, covers the expenses for repairing and replacing the damaged property. But have you ever thought, who will bear the costs, when your business in on halt due to any discrepancies of those burning flames? Whether your property is wholly/partially damaged, the business stops. Who will bear the loss which could have been a profit time for you, if there was no fire in your building? Do you want to carry the damage and heal these scars on your own? We believe it is not possible in the state when you can’t even bear the cost of damage.
But you have a solution for this- Consequential Loss (fire) Insurance Protection!
Risk Birbal can be your guide and help.
Yes, you can sleep peacefully while your office is burnt in the fire and you can’t achieve the profits during the time. Consequential Loss (Fire) Insurance does the magic by covering your profits, which you lost due to mishap of fire at your place. It offers the solution of covering profit lost due to a reduction in turnover, which rose from an interruption in business during property damage.
The consequential loss can arise majorly due to loss of gross profit and an increase in the cost of working. The loss in gross profit (sum of net profit and standing charges) usually occurs due to a reduction in turnover/output. The net profit is the net trading profit, excluding capital receipts, accretions, and outlay chargeable to the capital after making provisions for all standing charges. The standing charge refers to all expenses which do not reduce proportionately with a reduction in turnover. The cost of working is the additional expenditure which has to be incurred to avoid or diminishes the reduction in turnover.
The policy does not cover:
1. Any loss that is not covered under a Fire (Material Damage) policy.
2. Damage caused by war, invasion, acts of foreign enemies, hostilities, military operations, mutiny, civil unrest, military uprisings, insurrections, rebellions, revolutions, or usurped power.
Additional Premium Benefits:
1. Wages, either on a dual or pro-rata basis.
2. Compensation for layoffs, retrenchments, or notice wages.
3. Auditor’s fees.
4. Coverage for supplier’s premises.
5. Coverage for customer’s premises.
6. Coverage for the insured’s property stored at different locations.
7. Coverage for loss due to accidental failure of public electricity, gas, or water supply.
8. Damage from molten materials.
9. Loss due to spoilage or consequential damage.
How to get the best policy
Find a specialized industrial insurance policy provider
You must deal with specialists. Since specialized insurance companies that deal with Consequential Loss (Fire) Insurance can give you a comprehensive solution. You need to search for one skilled insurance service provider.
Run a comparison study
You can find several sites offering you information about the various insurance providers, their policies and reviews. By running a comparison study, you can easily find an insurance company that is right for your needs and requirements.
Seek professional help
It would be advisable to find professional help to understand the policy, because, at times, it can be too technical for you to understand, and a person who is expert in the insurance business can help you in spotting the right kind of policy for your business. The insurance expert can make you understand the legal terms associated with the policies.
Read the terms and conditions carefully
You should read the terms and conditions. For instance, you need to know about the social exclusions, the add-ons of the policy, and more. Hence, take out some time and read the terms and condition carefully before buying the insurance plan.
Never let the business be vulnerable to the unpredictability of nature and happenings. You can keep everything under control by availing the best Consequential Loss (Fire) Insurance for your business and act with a sense of urgency when things go wrong without prior notice. So, stay safe.