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.