Fire not only causes physical damage to your business assets but can also interrupt operations. Apart from the huge loss due to damages, fire can also lower turnover and profits, and can adversely affect the continuity of your business. The Reliance Consequential Loss (Fire) Insurance Policy is complementary to the traditional Standard Fire and Specials Perils Policy and covers the loss of Gross Profit due to reduction in turnover and increased cost of working.
This policy can be availed by any commercial or industrial establishment for protection against loss of earnings caused by threats covered under the Standard Fire and Special Perils Insurance Policy. The scope of coverage includes:
- Loss of net profit due to stoppage as a result of an insured peril
- Standing charges that continue to accrue in spite of stoppage of business
- Increased cost of working to maintain the normal business activity, during the period in which the business is affected
The sum insured under this policy is based on the estimated gross profit of the business and has to be adjusted depending upon the indemnity period.
This Policy does not cover:
- The difference between the value of stock at the time of fire and at the time of subsequent replacement
- Depreciation of undamaged stock after a fire
- Litigation costs connected with fire or consequential loss claims
- Third party claims
- Failure to recover book debts owing to destruction of records
- Loss of goodwill
- Loss of market
- Fine and penalties payable due to delayed fulfillment or cancellation of sales/service contracts
