Loss of Profit Insurance
Indemnity for Lost Business Revenue & Standing Charges Following Fire or Disaster
Loss of Profit (Consequential Loss / Business Interruption) Insurance compensates a business for loss of gross profit, net profit, and ongoing standing fixed charges during the period of business interruption following property damage caused by fire or covered perils.
Standard fire insurance policies repair damaged factory buildings and machinery, but Loss of Profit insurance maintains corporate cash flow, pays staff salaries, meets bank interest obligations, and covers increased cost of working while production is restored.
Loss of Profit Insurance Details & Add-On Covers
Loss of Profit Scope & Compensation
- * Indemnity for Loss of Net Profit resulting from business interruption
- * Coverage for Fixed Standing Charges (Salaries, Rent, Taxes, Bank Interest, Insurance)
- * Increased Cost of Working (ICOW) - Extra expenditure to maintain normal turnover during repairs
- * Customizable Indemnity Periods ranging from 3 months up to 36 months
Supply Chain & Extension Inclusions
- * Suppliers' Premises Extension - Coverage for business loss due to damage at key supplier sites
- * Customers' Premises Extension - Coverage for loss of revenue due to damage at customer locations
- * Prevention of Access - Coverage when access to business premises is blocked by authorities
- * Auditor & Accountant Fees for calculating business interruption claims
Key Benefits & Highlights
What Is Covered Under Loss of Profit Insurance
- Loss of Gross & Net Profit during Factory Downtime
- Salaries paid to Key Employees during Shutdown
- Rent, Bank Interest & Fixed Standing Overhead Charges
- Extra Costs Incurred to Rent Temporary Machinery or Premises
- Auditor Fees for Claim Quantification
Why Choose Dattani Insurance for Loss of Profit Insurance?
With over 20 years of risk management experience led by Chief Insurance Advisor Jay Dattani (United India Insurance Co. Ltd.), we prioritize honest, need-based advising over selling generic policies. We guide you through policy comparison, optimal sum insured valuation, and dedicated claim settlement assistance.
Frequently Asked Questions
How does Loss of Profit Insurance differ from Standard Fire Insurance?
Fire insurance covers physical damage to assets, whereas Loss of Profit insurance covers financial loss of income and fixed overhead costs incurred while the business is non-operational.
What is an Indemnity Period in Loss of Profit Insurance?
It is the maximum duration chosen by the insured (e.g. 12, 18, 24 months) during which the policy will pay for lost profits and standing charges following a disaster.
