Consequential Loss Insurance

This form of insurance is also known as Business Interruption. It is concerned with paying for the consequences of a material damage loss. When the property is used for business purposes, the trader due to damage looses his productive capacity or future earning power which is of paramount importance to him.  The normal business activities may even cease or be curtailed drastically and the gross profit reduced or eliminated.  The Consequential Loss Insurance therefore enables the Insured to recover gross profit due to the reduction in turnover and reasonable additional expenditure incurred in minimizing the loss.