Loss of Profit

Loss of profits

AXA Insurance Loss of Profits 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.

This policy operates only when there is an admissible claim under the property material damage policy.

Subject to certain limitations, this includes additional expenditure which is incurred for the sole purpose of avoiding or reducing a reduction in turnover.

Key Benefits

> Broader coverage with fewer limitations
> Flexibility to design the policy as per your needs
> Coverage can be extended to include Professional accountants
   charges, Claims preparation expenses

Product Details

In simplest terms the business interruption policy is designed to restore the business to the same financial position as if the loss had not occurred.

To obtain Loss of Profits, it is always essential that you have a Material Damage policy in force, covering your premises for the same period.

The interruption period starts from the date of the loss and extends to when the business’s turnover and profit levels are back to where they would have been but for the loss. There is a limit set on this interruption period and termed as the ‘Indemnity Period’ which is chosen when the cover is taken out and is recorded in months.

Extensions

It is essential that a Loss of Profits policy is “tailor-made” to meet your exact requirements; therefore, there are many extensions or “optional extras” that can be added to the basic cover. On request the policy can be extended to cover wages, auditor’s fees, etc. Some of the extensions available are briefly explained as follows:

> Professional Accountants Charges:
   This extension intends to cover reasonable professional accountant 
   charges incurred in producing any detail or any other information or
   evidence reasonably required for the purpose of verifying any claim 

> Claims Preparation Expenses Clause:
   This clause intends to cover reasonable costs incurred towards
   salaries/wages to own employees, cost of materials and fees payable
   for producing/certifying professional accounts toward claims
   preparation.