Consequential Loss Insurance
About Consequential Loss Insurance
This insurance is a sure way for you to receive payment for loss of accruable net profit, wages, auditors fees, etc. Protect your earnings.
What is covered?
- Net profit which would have accrued if the fire incident/special peril had not happened.
- Fixed charges as interest, rents rates etc. which are compulsorily payable although no business activities is taking place in the premises again. These are called standing charges in the policy.
- Expenses which will help to facilitate the resumption of normal business and minimize loss of net profit e.g. hiring of temporary premises, engaging the services of extra staff or working overtime. This is called increased cost of working.
- Wages of staff whose services will have to stop immediately due to the fire damage – retained wages of skilled employees whose services are needed/for quick return of the business activities of the company.
- Fee of the Auditors employed to prepare any claim under the policy.
Why Consequential Loss?
Payment for loss of accruable net profit, wages, auditors fees, etc.