Royal Sundaram Alliance Insurance has designed a policy for businesses to protect it against loss in profit due to business interruption as under the insured peril and claim in the material damage policy.
Cover of the policy by Royal Sundaram Alliance Insurance for fire:
This policy covers against loss of gross profit/revenue due to reduction in output or turnover.
The increased cost of working that is an additional expense incurred to avoid reduction in the output/turnover.
By paying additional premium what additional cover can be availed?
1. Auditor’s fee
2. Retrenchment compensation and Lay-off and Notice wages liability
3. Extension covers for loss incurred in public gas/water/electricity supply due to accidental failure.
4. Extension to cover customer’s premises and supplier’s premises.
Features of the policy of Royal Sundaram Alliance Insurance for fire:
1. Superior claim service
2. Selected standing charges insurance option
3. Turnover/output basis as an alternative insurance option
4. Where required expert and quick inspection
The insured sum should represent the amount by which
1. The turnover sum and the closing stock amount shall exceed
2. The opening stock sum, stock purchased amount and specified working expenses amount
The annual Gross Profit amount is insured if the indemnity period is for less than 12 months and the anticipated gross profit for the selected period is insured if the indemnity period is more than 12 months.
Following the business trends the gross profit earned in the 12 months period should be insured in case for loss in fire.