Chancery Wright Insurance Brokers

Fire Consequential Loss insurance

Fire and Special Perils Policy compensates only for Material Damage to the insured property. It specifically excludes any consequential loss. 

In case of a major loss caused by Fire, there could be an interruption in business operation leading to reduction in turnover finally resulting in possible loss of profits. However, standing or fixed charges continue to accrue regardless of whether there is any production or not. Such loss cannot be covered under Fire policy. 

Fire Consequential Loss Policy compensates for the reduction in turnover or increase in cost of working to maintain turnover as a result of perils covered under the Fire & Special Perils Policy. Hence, for complete protection to the business enterprise and its profitability, Fire Consequential Loss Policy is very essential in addition to Fire & Special Perils Insurance Policy.