Insurance for the loss of income resulting from an inability to trade following a Material Damage loss. Cover will pay rent, wages and all necessary over-heads whilst a company is unable to trade.
- Indemnity Period – The period during which the business’ results are affected due to a loss or damage, beginning with the date of the loss or damage and ending not later than the Maximum Indemnity Period. Sagar Insurances recommend a minimum Indemnity Period of 24 months
Estimated Annual Gross Profit –
Having chosen the indemnity period, the gross profit sum insured will need to be adjusted for that length of time. In doing this, account must be taken of future business trends.
- Additional Increased Cost of Working –
The reasonable additional expenditure incurred to avoid or diminish any further reduction in turnover following a loss even if the amount payable exceeds the saving made.