Once the fire and/or any of the perils occurs it is likely that the business would be interrupted and owner would suffer financial losses and ultimate loss in profit. Normally Gross Profit can be protected under this cover. This policy is operative only in conjunction with Fire & Allied Perils and Property Insurance policy.
As a result of loss due to a fire and the damage it may cause, besides the business coming to a halt, there are certain standing charges [fixed expenses] which will continue to be incurred irrespective of the situation. These expenses, such as bank interest, employee's salaries, rent, electricity and other standing charges will need to be addressed, in addition to the loss of revenue. The insured suffers financially due to the loss of his gross profits; reduced turn-over whilst incurring increasing costs while working during the period of interruption.
The Business Interruption Policy can only be issued if a Property All Risks or Fire Insurance Policy is already in place.
The premiums are calculated on the basis of the total sum insured (turn over), the limit and period of indemnity, nature of risk, location and the housekeeping. Furthermore, the premiums are based on the nature of business, location and the security measures in place. For a thorough understanding of the product, please refer to our standard policy terms and conditions.
There are two types of deductibles (monetary and time) applicable under the Business Interruption Insurance for each and every loss. There are a number of exceptions and exclusions, which are part of the policy terms and conditions. Our technical staff will be happy to assist you should you require additional information or further clarification.