Business Interruption following Fire & Allied Perils Insurance

Business Interruption following Fire & Allied Perils Insurance


The loss/damages resulting from fire or other allied perils besides bringing physical loss /damage may result in loss of gross profit and incurring standing charges.
These Expenses such as bank interests, employee’s salaries, rent, electricity and other standing charges will continue to be incurred despite of the loss of revenue.
Such financial losses suffered due to loss of gross profits on account of reduction in turnover and standing charges incurred during the period of interruption due to an insured peril are compensated under this insurance.
This policy is intended to cover loss of Gross Profit following material damage as a result of fire, lightning, Storm, hurricane, earthquake, volcanic eruption, flood, impact damage, etc (or other insured peril) at your premises.
Business Interruption Insurance covers loss of profits of a business due to reduction in the turnover caused by a loss or damage that is covered in the Fire & Allied Perils policy. The insurance includes cover for Increased cost of working following the loss as well as the standing charges of the business that continue even though business activities have come to a temporary halt.

  • Following are covered due to a decrease in turnover and increase of cost of working, to maintain your business immediately following an accidental loss or damage to your property due to Fire & Allied Perils:

    • Loss of Gross Profit
    • Loss in respect of wages and the amount payable as indemnity
    • Auditor’s Fee
  • A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential.

    Without business interruption insurance, both your business and personal savings may be needed to salvage or maintain the business. If these savings are not available, the business may never resume and could be forced into bankruptcy.

    • Machine Specification:(type, output, capacity, speed, load, weight, voltage, amperage, cycles, fuel, pressure, temperature, etc). Year of manufacture and Machine Operators.
    • Loss of profit related details such as Turnovers and cost of working which may get affected in case of machinery breakdown