The IGI Fire Consequential Loss policy provides cover for
expenses and increased cost of working as a result of business interruption
following a loss covered by the fire policy. Insurance cover can be taken for
the maximum period (Indemnity period) of the anticipated interruption in the
event of loss.
In addition, the supplier's and the customer's premises on
which the business is dependent and cost of auditors fee (required to submit
the monetary claim) can also be insured.
Because of the business interruption following a loss, there
may be a reduction in turnover and this may affect the anticipated gross
profit. Fixed costs are to be incurred immaterial of the production activity.
Consequential Loss policy covers reduction in gross profit due to business
interruption. The additional expenditure necessarily incurred for avoiding or
reducing the fall in turnover during the interruption period are covered
under this policy.
Premium chargeable depends on the type of industry or
business, the anticipated gross profit, indemnity period chosen and
additional covers required.
• Basic fire policy to cover the
assets at the business premises is a prerequisite as loss should first
be admitted under the fire policy