The Cholamandalam MS Consequential Loss Insurance policy compensates for those loss of gross profit consequent to a fire accident/peril covered in fire policy. Consequential losses must be due to reduction in turnover due to a fire accident and hence reduction in profits arising out of the business interruption, and any fixed charges which are incurred continuously

The Policy broadly covers loss of Net Profit on account of interruption of business, which arises out of Material Damage to property due to Fire or any other insured peril under the Standard Fire and Special Perils Policy.

It also covers standing charges which continue to be incurred during the period of interruption and the increase in cost of working, necessarily and reasonably incurred, to maintain the business as far as possible at its normal level, so that loss under net profit and standing charges is avoided or at least minimised.

Sum Insured

Sum to be insured under this policy is the estimated Gross Profit for the Indemnity Period selected.

Indemnity Period is the maximum period beginning with the occurrence of the damage, for which the cover of Loss of Gross Profit is required and should reflect the maximum period anticipated for reinstatement of the damaged property.

Cost of preparing Fire and Loss of Profits claim, third party claims and loss of goodwill

The Cholamandalam MS Consequential Loss Insurance policy compensates for those losses which arise as a direct or indirect consequence of a fire accident in the property of the insured. Examples of such consequential losses are reduction in turnover and hence reduction in profits arising out of the business interruption, and any fixed charges which are incurred continuously