Major Classes of Insurance
Consequential Loss Following Fire Policy
Loss Of Profit)
This covers against loss of earning ability following damages/loss caused by fire and special perils.
There are some costs/overhead that would still remain at their usual level after a loss has occurred. While the fire insurance will take care of the material loss the consequential loss policy will take care of earnings that would have been lost as a result of the fire incident. Additional expenses may be incurred in trying to carry on business after the fire, by taking up temporary premises, hiring equipment, purchasing goods to complete contracts etc.
The under-listed factors should be taken into consideration before requests for cover in respect of con. Losses are granted by Insurance Company (ies).
The proportion of wages required to be paid for the selected first few weeks following the incident and the portion required for the remainder of the indemnity period. The completion of a proposal form is highly desirable as it forms the basis of contract.