Business Interruption Insurance
The Fire & Special Perils policies covers only material damage loss, i.e. the loss of capital invested in buildings, plant, stock etc. A Business Interruption Insurance policy however, covers loss of revenue on investments being rendered temporarily unproductive owing to damage by an insured peril. This policy must be taken together with a Fire (Material Damage) policy.
What it Covers
- Loss of Gross Profit or Revenue due to Reduction in Turnover or Output
- Increase in cost of working – The additional expenditure incurred for the purpose of avoiding or diminishing the Reduction in Turnover or Output
- Auditors fees
Basis of sum insured
Could be arrived at using the following methods,
- Additions basis – Gross profit = Standing Charges + Net Profit
- Difference basis – Gross Profit = (Turnover + Closing Stocks) – (Opening Stocks +Uninsured Working Expenses)
Note
- Particulars of cover and exclusions given above are not complete or exhaustive. For more details please call us on 0112 428 428 or visit one of our nearest branches.