Loss of Profit Insurance
Fire and Theft
Close down for some other reason
In New Zealand we are all very aware that things happen to interrupt business. The last few years have seen several large earthquakes in major metropolitan areas which have resulted in businesses being closed for days, weeks, months or even in some cases for years. A loss of profit policy will cover you when the unforeseen happens.
In simple terms, Loss of Profit insurance is intended to cover losses to a business following physical damage by fire or breakdown, until turnover has recovered to a similar level to that prior to the damage. It requires that a fire or machinery breakdown policy has been affected by the insured. Cover is for a maximum sum insured representing the insured's gross profit and the increased cost of working for the anticipated period that production is interrupted following the physical damage, and for a maximum indemnity period representing the anticipated period to restore the business to normal operations and profitability.