Fire Loss of Profit Insurance (FLOP)

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Fire Loss of Profit (FLOP) is also called as Business Interruption (BI) Insurance cover or consequential loss (fire) policy :

  • Product Information
    • Fire Loss of Profit (FLOP) policy covers Loss of Gross Profit and/or increase in cost of working due to reduction in turnover/output due to operation of peril covered in the Standard Fire & Special Perils Policy (SFSP).
    • Fire Loss of Profit cover would become operative only when there is a Material damage loss in Standard Fire & Special Perils Policy (SFSP) is payable due to covered perils like Fire, Lightning, Riot & Strike Malicious damage, Storm, Tempest, Flood, Inundation
    • To claim under Business Interruption (BI) there should be an admissible claim under Fire policy
  • What is covered?
    • Gross Profit (GP) = Net Profit (NP) + Fixed costs (standing charges)
    • Increased cost of working
  • Add on covers available
    • Various additional covers like Suppliers Premises, Customer Premises, Failure of Public utility of power / gas/water supply are also available as per requirement and on payment of additional premium.
  • Premium Rates
    • Rating depends on:
      • Annual gross profit
      • Annual turnover
      • Business Interruption Sum Insured
      • Indemnity Period ( For e.g 6,9,12,15 months)
  • Excess / Deductable
    • Policy excess for this policy will be Time excess and will be mentioned as no of days for example 7 days, which will be the deductible under the policy
  • General Exclusion
    • War, invasion, Act of foreign enemy, Hostilities or Warlike Operations (whether war be declared or not), Civil War, Mutiny, Civil Commotion assuming the proportion of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, & military usurped power.
    • Nuclear power reactions and Radiations.
  • Any other information
    • Good accounting process is a requirement.
  • Disclaimer
    • Please go through the policy terms and conditions of the Insurance Company.