Consequential Loss Explained
When setting up a new business or office there are many legal and financial implications that need to be taken care of. Insurance policies such as employer liability, contents and building insurance may seem the obvious ones. All businesses should protect themselves with consequential loss insurance too.
What is consequential loss insurance?
Consequential loss protects a business against loss of productive capacity or future earning power which may occur as a result of loss or damage to the premises and property insured under the Fire/Extraneous Perils.
In simple terms consequential loss insurance protects a business from the drop off or halt in business caused by damages that prevent the continuation of normal business.
Will premises insurance not cover any consequential loss?
Unfortunately property insurance does not cover the loss caused indirectly by the peril. So, although the property insurer may rebuild the property they will not pay for the loss incurred while the business was not operating.
How to buy consequential loss protection
Consequential loss insurance is not as widely available or as easily accessible as traditional insurance products. It is best to approach a specialist commercial insurer who can advise on the best level of cover for a business.
Mansard Insurance offer a very affordable and flexible consequential loss insurance product, please contact them for a quote or more information.