What Are The Key Features of Loss or Profit Policy
.png)
Loss of profit insurance is a valuable protection for many businesses. This article will discuss the key features of this type of insurance. If you are looking to protect your business against financial losses, then a loss of profit policy may be right for you. Read on to learn more about the policy’s benefits and drawbacks before deciding whether or not it’s worth getting coverage!
Key Features of Loss of Profit Policy
1. Coverage
The last thing you want to think about is how your business will survive after a fire, flood, or other perils destroys it. You’ll need to deal with the consequences not only of rebuilding and repairing damaged assets but also of losing out on profits while your company operates in downtime. The loss can be devastating for any company when their livelihood depends on the successful operation of their business. However, with the right coverage through a Loss of Profit Policy, one can have peace of mind knowing that losses incurred due to such perils will be covered by insurance! The best way to find out what your options are is by understanding the different types of benefits available, which are outlined below.
- Deficit of Net Trading Profit
- Loss of Wages
- Standing Charges
- Increased Working Cost
- Fees of an Auditor
2. Extensions
If you’re looking to purchase a Loss of Profit Policy, it’s important to understand the different extensions that are available. With the standard Loss of Profit plan, three major Extensions are offered:
- Inadvertent failure of public electricity, water supply, or gas;
- Damage to the customer’s premises as a result of hazards covered by the Fire Policy; and
- Damage to the Supplier’s premises as a result of hazards covered by the Fire Policy
Extensions are a great way of increasing coverage of insurance by adding a small amount to the annual premium.
General Exclusions
It is important to understand the general exclusions of an insurance plan at the time of purchasing one. It helps reduce the chances of getting claims rejected. The general exclusions to the Loss of Profit policy are:
- Deficit of Gross Profit
- Difference between Stock Value before fire and replacement
- After-fire degradation of surviving stock
- Goodwill loss
- Claims of third-parties
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 21 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
Latest Post
.jpg)
Having a bike is not just about convenience, it’s a huge responsibility. Financial protection of your two-wheeler is important and the best way to ensure that is to have a bike insurance policy that will protect you in case of an accident, theft or a natural calamity. There are so many options when it comes to policies, making it difficult to know what’s best. This guide makes it easier to choose the best bike insurance policy that is suitable for you.
.jpg)
Sometimes, we do not pay as much time and heed to car insurance policies as we do for life insurance plans. While this is quite natural, you must know that such a mistake can lead to heavy financial losses.
Even though people are now changing and more and more individuals have begun opting for car insurance, most people from the upper and lower-middle-class sections in India are not aware of why their insurance premiums vary so much.
Knowing about such variations and the factors that cause such variations won’t just educate you about premiums. It will also help you address higher premiums and tackle them effectively.
Fixed Deposits (FDs) are one of the safest ways to grow your savings. HDFC Bank offers attractive FD interest rates, allowing you to earn guaranteed returns on your investment. But before you invest, it's important to know how much interest you will earn and what your final maturity amount will be.
Health insurance plans are purchased with the hope of medical protection in times of need. However, sometimes it ends up being a source of surprise and disappointment. This mostly happens when people rush to buy health insurance plans, often overlooking essential aspects. Ignoring waiting period clauses, misunderstanding exclusions, and being unaware of sub-limits can lead to unwanted problems in the future.
.png)
In case of a medical emergency, cashless hospitalization is the best option to avail for anyone. This is only possible if your insurer has a tie-up with some hospitals that are covered under its network and where you can seek treatment without spending a penny. Here we share the list of network hospitals empaneled with Aditya Birla Health Insurance.
Speak to our Advisor
+91
By clicking the button, I authorize Paybima advisor to contact me via SMS, Email, Phone, WhatsApp or any other modes overriding my 'DND'.T&C Apply.