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BUSINESS INTERRUPTION INSURANCE

ABOUT

All Industries need this insurance in conjunction with Standard Fire and Special Perils Policy (SFSP)/ Machinery Insurance Policy. For any claim under this policy, a physical loss claim should have been admitted under the said SFSP or Machinery Insurance Policy.

Sum insured shall represent the annual gross profit, which is ascertained either by “Addition Method” or “Difference Method”. Under “Addition Method”, the annual gross profit is determined as the sum of the net profit (before tax) and the standing charges you wish to cover. Under “Difference Method”, annual gross profit is determined as the difference between the turnover and the variable charges.

In case of loss resulting in interruption, Insurance offers indemnity in respect of gross profit lost during the interruption period. Insurance also covers increase in cost of working of the business during the period of indemnity (from date of loss/damage to date in which business results return to normal). In case of certain industries, loss of gross profit could be measured by ascertaining loss of output during the interruption period in order to determine indemnity

This is a premises based insurance, therefore, if more than one location needs to be covered, the said locations to be listed in the policy. Period of Insurance is one year, renewable every year. However, period during which the business is expected to be interrupted consequent upon the unfortunate event, could be insured up to 36 months.

BUSINESS INTERRUPTION INSURANCE

BENEFITS

  • This is a premises-based insurance. If the business has more than one location, all locations must to be listed in the proposal.
  • Debt Charges could be covered as Standing Charges.

Add On Covers

  • Prevention of access due to perils covered under SFSP/Machinery Insurance could be covered.
  • Interruptions due to all add-on covers under SFSP/Machinery Insurance could also be covered.
  • Interruptions due to damages to Customer’s/Supplier’s premises as well as damages to Public Utilities, Water works and Electric Stations could be covered.

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