Fire and Additional Perils Policy pays for rebuilding of the damaged property caused by fire and perils. It does not compensate for loss of profit incurred during the rebuilding period. However, a Consequential Loss/Business Interruption/Loss of Profit insurance Policy will pay for reduction in gross profit incurred during the rebuilding or Indemnity Period. Indemnity Period is the maximum period beginning with the occurrence of the damage, for which cover of Loss of Gross Profit is required and should reflect the maximum period anticipated for reinstatement of the damaged property.
The Policy broadly covers loss of Net Profit and Standing Charges incurred on account of interruption of business, consequent upon Material Damage to property due to Fire and perils.
The cover include standing charges which continue to be incurred during the period of interruption and the increase in cost of working necessarily and reasonably incurred to maintain the business as far as possible at its normal level.
The Sum insured under the policy is the estimated Gross Profit for the Indemnity Period chosen.
We will not be liable for any claims arising out of: