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Contents
  1. Fire Loss of Profit Insurance (Business Interruption Insurance)
  2. What is Fire Loss of Profit Insurance?
  3. What is the Interruption Period under a Fire Loss of Profit Insurance?
  4. What is the Loss Payable under a Fire Loss of Profit Insurance?
  5. What are the Major Exclusions in a Fire Loss of Profit Insurance (Business Interruption Insurance)?
  6. Looking for a Specialist Insurance Broker for Fire Loss of Profit Insurance?
  7. FAQS
  8. Testimonials

Fire Loss of Profit Insurance (Business Interruption Insurance)

A Major Fire Accident can bring your business to a standstill for several months or even a year. During the time you are trying to bring your business back on its feet, you suffer Loss of Sales and Profit which the business would have earned had it been operating smoothly.

Meanwhile, various Fixed Charges like Employees' Salary, Interest Payments on Bank Loans, Rent of Premises have to be continued even though your business earns no income during the period.

These payments, which need to be made exactly at the time when you are stretched for Cash on account of the Fire Loss, may be very difficult.

This is exactly the time when a Business Interruption Insurance will come into play, ensuring that you do not face any Loss of Income even though your Factory/Commercial Establishment gets destroyed in a Fire and your Earning Capacity is diminished.

Fire Loss of Profit Insurance (Business Interruption Insurance)

What is Fire Loss of Profit Insurance?

When a Factory insured under a Standard Fire Insurance Policy gets destroyed in a Fire, the Factory Owner suffers from Loss of Production and Sales. This leads to a Reduction in Firm Turnover which in turn adversely impacts Profits.

A Fire Loss of Profit Insurance (also known as Business interruption Insurance) covers the Loss of Gross Profit on account of Reduction in Turnover due to Business Interruption that the Insured faces on account of the Insured Property getting destroyed in a Fire.

What is the Interruption Period under a Fire Loss of Profit Insurance?

Interruption Period is the period during which the business is Interrupted ie. the day starting from the Date of Loss/Damage to the Date on which the business achieves the Same Production Levels prior to the Damage.

What is the Loss Payable under a Fire Loss of Profit Insurance?

A Fire Loss of Profit Insurance (also known as Consequential Loss (Fire) Insurance) normally pays the Loss of Gross Profit suffered by the business on account of the Business Interruption plus the Increased Cost of Working incurred to avoid Business Interruption less the Savings in Standing Charges during the Indemnity Period.

Example of Loss Payable under a Fire Loss of Profit Insurance Policy

ABC Company has taken a Fire Loss of Profit Insurance Policy for a period of 6 months. What is the Loss Payable under a Fire Loss of Profit Insurance Policy if the Factory catches Fire?

What is the Loss Payable under a Fire Loss of Profit Insurance?

What are the Major Exclusions in a Fire Loss of Profit Insurance (Business Interruption Insurance)?

The major exclusions in a Business Interruption Insurance are as follows:

Exclusions under a Fire Loss of Profit Insurance (Business Interruption Insurance)
Loss caused to the Insured Property due to Willful Misconduct of the Insured Loss caused due to War, Invasion
Loss caused on account of restrictions imposed by a Governmental Authority
Get Cover for Loss of Profit during the Period the Business is Interrupted

Get Cover for Loss of Profit during the Period the Business is Interrupted

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Looking for a Specialist Insurance Broker for Fire Loss of Profit Insurance?

Most businesses are exposed to various risks in their normal course. Though you cannot avoid them, careful planning can help you emerge from these losses in a far better position than if you would have not planned for these risks.

If you are looking to purchase Fire Loss of Profit Insurance for your Factory or Commercial Establishment, Qian's team of experts will help you understand the various Clauses and make sure that you are adequately Insured in terms of Coverages and Limits.

Request your FREE 1 Hour Business Interruption Policy Review with Qian. Contact us for your Fire Loss of Profit Insurance Policy right now at support@qian.co.in or 022-35134695 or fill this Contact Form. We will respond within 24 hours, guaranteed.

Looking for a Specialist Insurance Broker for Fire Loss of Profit Insurance?

FAQS

What is Contingent Business Interruption under a Fire Loss of Profit Insurance?
Contingent Business Interruption under a Fire Loss of Profit Insurance covers Business Losses suffered by the Insured Party on account of Damage to a Property located outside the Insured's Premises.
What are the Add-On Covers available under a Fire Loss of Profit (Business Interruption) Insurance Policy?

A Fire Loss of Profit or a Business Interruption Insurance has the following Add-On Covers:

  • Supplier's Premises Extension
  • Customer's Premises Extension
  • Failure of Utility Supply Extension
    • Failure of Electricity Supply
    • Failure of Water Supply
    • Failure of Gas Supply
  • Prevention of Access Cover

To know more you can reach out to us at support@qian.co.in or 022-35134695 or fill this Contact Form.

What are the various Clauses in a Fire Loss of Profit Insurance?

A Fire Loss of Profit or a Business Interruption Insurance has the following Clauses:

  • Alternative Basis Clause
  • Departmental Clause
  • Accumulated Stock Clause
  • Auditor's Fee Clause
  • Fines and Penalty Clause
  • Return on Premium Clause
  • New Business Clause
To know more you can reach out to us at support@qian.co.in or 022-35134695or fill this Contact Form

Testimonials

Average Customer Rating:

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Hemik of Qian is knowledgable, prompt and very professional - highly recommended. I had to claim for a critical illness under my health insurance policy and Qian’s assistance with the claims process and advice on how to deal with the insurer was invaluable.

Niyati Shah