This policy is to take care of business loss resulting from accidental loss or damage to property covered
- Loss/Damage to the property often results in partial or full cessation of work
- Loss of Gross profits due to reduction in Turnover/Output that could not be achieved during the period of interruption due to accidental loss or damage to property is covered under this policy
- It is a financial loss as a result of physical loss or damage. This policy envisages covering this financial loss
- Loss is measured in terms of reduction in Gross Profit (Net profit + Standing Charges) or, Increased Cost Of Working (ICOW) incurred to maintain the pre-loss Turnover/Output
- Interruption period (Indemnity period) starts from the day of the accident and lasts for so many days as mentioned in the policy
- The indemnity period is chosen by the Insured based on the maximum time that may be required for restarting the ceased operations after a major accident and resultant damage to property (machinery)
- Sum Insured: Estimated Gross profit for the indemnity period chosen by the Insured.
- This policy is given only in conjunction with material damage policy (Fire or Machinery Breakdown policy)
- Fire Loss of Profits cover is in built-in Industrial All Risk (IAR) policy)
- Fire Loss of Profits cover is in built-in Industrial All Risk (IAR) policy)