Loss of Profits / Consequential Loss / Business Interruption
Loss of Profit Insurance indemnifies your business for loss of gross profit and increased cost of working arising from interruption of business following physical damage to insured property (typically covered under Fire / Property Damage Policy).
Gross Profit
Increased Cost of Working
Standing Charges
Indemnity Period: 6 Months, 12 M, 24 M & 36 M
Add-On Covers
Denial of Access
Loss due to suppliers’/customers’ premises damage
Utilities interruption (power, water, gas)
Accountant’s fees
Frequently Asked
Questions
Is Loss of Profit insurance mandatory?
No. It is optional but strongly recommended for businesses with fixed costs and loan obligations.
Can LoP be purchased without a Fire policy?
No. LoP must be linked to a Property Damage / Fire policy.
What does LoP insurance actually cover?
Loss of gross profit and fixed expenses due to business interruption after insured damage.
How are the sum insured calculated?
Based on projected gross profit for the chosen indemnity period.
What is Gross Profit under LoP?
Net profit plus insured standing charges.
Does it cover partial shutdowns?
Yes. Both partial and total interruptions are covered.
Are salaries covered?
Yes, if declared as insured standing charges.
What happens if gross profit is under-declared?
Claims may be reduced due to the average clause.
