Assets / Properties with intrinsic economic value can be covered under Fire & Special Perils Insurance. It is designed to provide protection in respect of loss of or damage by Fire & Allied perils to buildings / civil structures, plant machinery equipment, furniture, fixtures fittings, goods & merchandise etc., This Insurance affords cover for 'material Damage'.
Business Interruption (BI) Insurance is popularly known as Consequential Loss (CL) Insurance or Loss of Profits (LOP) Insurance. It protects future earnings consequent upon a loss due to an insured peril to afford indemnity against loss resulting from interruption of or interference with trading / manufacturing following a loss due to an insured peril at insured's premises.
Fire & Perils Insurance covers material damage loss, whilst BI (Fire) Insurance Covers loss of gross profit as a result of plant & machinery being rendered unproductive temporarily.
After damage due to insured peril, there may be loss of customers, non fulfilment of orders, breaking of contracts, continuing charges, overheads to be met from reduced revenue and temporary extra costs incurred.
The BI (Fire) Insurance, which covers loss of gross profit, as defined in the Policy is an essential complement to Fire & Perils Insurance. Similarly, the B.I. (Machinery Breakdown) Insurance, complements Machinery Breakdown Insurance.
B.I. Insurance undertakes to provide an indemnity for loss sustained during a period of interruption after an insured loss.