Consequential loss means any interruption in the business operations caused by fire, resulting in different types of other financial loss. A consequential loss (fire) insurance policy covers various types of lost business income due to fire. Find out everything about this insurance policy in the below article.
A fire incident in a business site can not only damage the goods and machinery but also impact the overall business operations. This insurance policy covers several damages, including-
This insurance policy offers financial coverage against various kinds of business losses due to fire. Some of them are below-
In case of any fire mishap resulting in a loss in income or revenue of the business is covered under this policy. As a policyholder, you should instantly call your insurance provider and register your claim.
Your insurer will consider annual gross profit, extensions or add-on covers, and indemnity period to calculate the premium.
To evaluate the loss or damage to the business, a licensed surveyor is appointed by your insurance provider. The surveyor will prepare the Final Survey Report (FSR).
According to the FSR submitted by the appointed surveyor, the company will compensate for the consequential loss incurred to the business. However, it is advised to read the terms & conditions of the insurance policy before buying the policy.
The policy has certain advantages against those out-of-control circumstances that can ravage their property and business function. Here is a list of benefits associated with consequential loss insurance-
Here are a few things that you must keep in mind before purchasing the policy-
Certain conditions are not covered by this policy. Here is a list of general exclusions-
In a Nutshell
Your standard fire insurance policy only protects against physical damages to the property. However, when the damaged property is being repaired or replaced, it hampers the business's functioning. That is why this insurance policy is significant for those businesses. It covers all the loss of profits due to a reduction in turnover. Hence, it protects your business from those unforeseen situations.
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