FIRE BUSINESS INTERRUPTION INSURANCE
When a business concern suffers fire damage of any magnitude, the resultant financial loss will be something more than the cost of making good the material damage. The probability is that the business will cease operating, partly or wholly, or will operate less efficiently (that is at greater cost) until the damage is made good.
Our aim is therefore to provide an indemnity against financial losses resulting from material damage. Specially the following losses shall be considered
- Loss of Gross profit: Consists reduction in volume of trading resulting from damage of premises by fire or other perils covered. It covers loss due to diminution in net profit and necessity to meet payment of standing charges out of reduced earnings.
- Loss in respect of wages: Due to paid employees retained for whole or part of period of interruption and wages in lieu of notice to those employees whose services are no longer required.
- Additional cost of working: Incurred for purpose of minimizing the effects of damaged upon the business.
Peril covered
This covers same perils covered under standard fire policy including.
Fire
Lighting
Explosion (Limited)
The following extensions could be added to the fire business interruption policy by an endorsement and on payment of a moderate additional premium.
- · Explosion other than steam pipes, vessels and apparatus
- · Riot and malicious damage
- · Aircraft and other aerial devices or articles dropped there from
- · Impact by road vehicles
- · Earthquake
- · Storm and tempest
- · Sprinkler leakage
- · Failure of electric power, gas and water suppliers
Summary
These notes are intended to give you only a brief outline of the very wide range of insurance offered and they must be read in conjunction with full policy wording, a copy of which is available for inspection at any of NIC Branch Offices.
Next Move
To obtain details of the cover that can be offered to you at competitive premium, just enquire at any of our Branches or at one of our many experienced agencies.
