This policy can be taken complementary to a basic property policy like Fire and Allied Perils, Property All Risk or Machinery Breakdown. The Business Interruption policy covers the Loss of Gross Profit sustained by an organization due to reduction in turnover following a loss or damage because of the operation of an insured event /peril.

In case of a major loss caused by Fire, there could be an interruption in business operation leading to reduction in turnover finally resulting in possible loss of profits. However, standing or fixed charges continue to accrue regardless of whether there is any production or not. Such loss cannot be covered under Fire policy.

Consequential Loss Policy compensates for the Revenue loss suffered by the enterprise. Hence, for complete protection to the business enterprise and its profitability Consequential Loss Policy is very essential in addition to Fire Insurance Policy.

Careful consideration needs to be given while selecting the sum insured (also known as estimated gross profit) to ensure that all necessary components have been included. The period of interruption for which the policy would pay also needs to be decided on carefully.

Based on the nature of ones' business this cover can be tailored and extended to cover customers' premises, supplier's premises etc

Main Extension

Policy can be extended to suppliers’ and customers’ premises or public utilities, on which the business is dependent and cost of Auditors fees required to submit claim on Insurer.