Consequential Loss Policy
This policy is often referred to as “Business Interruption Insurance”, it is designed to indemnify the insured against loss of productive capacity or future earning power which may occur as a result of loss or damage to the premises and property insured under the Fire/Extraneous Perils Policy.
This policy is normally taken out in conjunction with the Fire Policy so as to ensure that when the latter pays for the material damage insured under it, the consequential policy will pick up the intangible loss that will flow from the primary loss of the Fire Policy. The items usually covered under this policy are:
- Gross Profit
- Salary and Wages
- Auditor’s fees