Loss of Profit Insurance
This insurance will indemnify the Insured against loss of gross profit as consequence of loss destruction of damage inmnifiable under material damage.
The main components imposed under this section are:
- Reduction in sales turnover
- Increase in cost of working
This coverage can be made as extension coverage under fire, property/industrial all risk insurance.
Practically, two types of cost that indeminifiable under this policy are gross profit and wages shall be paid to employees.
This coverage can be made as extension coverage under fire, property/industrial all risk insurance and machinery breakdown insurance and etc.
