Fire Loss of Profit Insurance (FLOP)

In case there is a reduction in turnover during the interruption period followed by loss or damage by an insured peril under the Material Damage (Fire) section of the Policy, that is also covered by Fire Loss of Profit Insurance.

Types of losses covered

  • NET PROFIT: Income that a business would have earned if it had not been unable to operate.
  • STANDING CHARGES: Expenses that a business must continue to pay even if it is not operating (e.g., rent, utilities, etc.).
  • INCREASED COST OF WORKING: Additional expenses that a business incurs, in order to restore things and thereby reduce the interruption period (e.g., job work operations, renting of additional warehouses, etc).

Features

  • Sum insured is the projected gross profit during the indemnity period.
  • Indemnity period varies with projected maximum loss, and can vary from 3 months to 3 years.
  • We provide assistance in selecting the right Sum Insured and the Indemnity Period.
  • Coverage includes fixed wages and retrenchment compensation.
  • Extensions to cover Contingent Business Interruption after damage to premises of Public Works, Customers and Suppliers.
  • Policy exclusions include interruption followed by orders of public authority, lack of funds to restore business and loss of market.
  • FLOP Insurance has a deductible for the interruption that is not covered (expressed in number of days).

Claim Process

1

Notify your insurance company

2

Document the loss

3

Gather supporting documents

4

Engage with the insurance adjuster

5

Document ongoing losses

6

Calculation of loss of profit

7

Negotiation and settlement

8

Claim payment

9

Thank You

Note: The claims process can vary depending on the specific circumstances and the policies.

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