Your business is the sum of the efforts and aspirations of your staff and your near and dear ones. Fire can destroy everything in its path, leaving you to recoup in its aftermath. Protecting your assets against fire, is of course, essential. But what about the losses you incur from disruption to your business following a fire? The financial consequences can often be just as devastating to your organisation. That´s where HDFC General Insurance Company Ltd. is with you all the way till your business is restored to its pre-damaged level.
Scope Of Cover:
In the event of any interruption to your business as a result of damage to your premises due to any peril insured under the Fire Material Damage Policy, this policy enables you to recover:
• Loss of Gross Profit due to a reduction in turnover.
• Increased Cost of Working incurred in minimizing that loss of Gross Profit.
Definitions:
Gross Profit is the amount by which the sum of the turnover and the amount of the closing stock shall exceed the sum of the amount of the opening stock, the amount of stock purchased and the amount of the specified working expenses.
Indemnity Period commences with the date of the damage and lasts till such time as your business is restored to its pre-damage level, or the period stipulated in the policy, whichever is earlier. The policy insures earning of your business lost during the Indemnity Period.
Sum Insured:
This is based on the estimated annual gross profit of your business as per the previous year's accounts. An Insured is entitled to return of premium (not exceeding 50% of the premium paid) in case the Gross Profit earned during the financial year concurrent with the period of insurance is less than the Sum Insured.
Rating:
The system of rating is governed by tariff. There are two factors in the rating systems:
• The multiplier which is associated with the selected indemnity period,
• The basis rate which arises from the premises concerned.
Additional rates will be applicable for additional perils and for extensions to other premises.
Extensions:
• Wages.
• Lay-off and retrenchment compensation and notice wages liability.
• Auditor´s fees.
• Supplier´s extension.
• Customer´s extension
• Public utilities extension
Main Exclusions:
The exclusions would be the same as for Fire Material Damage cover.
