Consequential loss

Consequential Loss

Stay afloat in the face of uncertainty

Following property damage, the insured may not be able to operate and resultantly, not be in a position to generate the requisite income to cover fixed expenses. The consequential loss policy provides coverage for gross profits for a period specified by the insured, and continues to provide the funds needed to cover such expenses until turnover is returned to normal.

Consequential loss insurance is a type of business insurance related to losses to business property or equipment. This insurance policy provides additional coverage not normally included in our Standard Business Insurance.Consequential loss insurance policies diminish indirect risks that arise from a situation and are typically offered in combination with regular business or property insurance. Consequential loss is considered an indirect loss, as opposed to a loss from a natural disaster or accident.

Why choose Covenant Insurance Brokers?

Why do you need Consequential loss insurance?

There are several benefits to having a consequential loss insurance policy. Normal insurance policies generally cover the cost of repairing or replacing damaged property, but consequential loss insurance will cover additional financial losses that your business may incur as a result of such damages. Consequential loss insurance is a solution to cover your profits and business interruptions. It can be purchased in conjunction with a standard business policy at a much smaller cost than the effects your business could endure.

What's Covered?

Consequential loss insurance is not intended to cover actual property damage from storms, fire or theft. It is designed to cover the financial losses due to interruption of business while a damaged property is being repaired or replaced.

which would have accrued if the fire incident/special peril had not happened.

as interest, rents rates etc. which are compulsorily payable although no business activities is taking place in the premises again. These are called standing charges in the policy.

Expenses which will help to facilitate the resumption of normal business and minimise loss of net profit e.g. hiring of temporary premises, engaging the services of extra staff or working overtime.

Example, if someone claims that your social media post damaged their reputation.

Example, if you lost a client’s financial documents after they’d given them to you to look after.
Example, cover the cost to help repair your reputation after a claim against you.
Cover the legal costs and expenses of investigating, defending and settling claims made against you (up to the amount of cover you have).

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