Consequential Loss (Fire) Insurance
The Consequential Loss (Fire) Insurance Policy would be applicable for all risks covered under Standard Fire and Special Perils Policy. The Sum Insured is based on the gross profit of the business. Gross Profit is defined as the sum of Net Profit and insured standing charges.
Policy broadly covers
- Loss of Gross Profit due to Reduction in Turnover
- Increased cost of working - The additional expenditure incurred for the purpose of avoiding or diminishing the Reduction in Turnover or Output.
On payment of additional premium, the following coverage can be selected
- Supplier's extension
- Customer’s extension
- Failure of Public power supply/Gas works/water works
- Auditor’ fees
This Policy does not cover the deductible stated in the Schedule in respect of each and every loss under various covers. Deductible is generally defined in terms of number of days of standard gross profit.
All exclusions applicable for Material Damage (SFSP) policy are applicable for CLOP policy also.