FIRE CONSEQUENTIAL LOSS OR LOSS OF PROFIT OR REVENUE

Whereas the fire policy covers you against material losses which you incur as a result of fire damage, the consequential loss insurance covers loss of profits or loss of revenue consequent upon such fire. Objectives such as making profit and declaring dividends to shareholders, the fire damage notwithstanding, can be met with the existence of this policy.
It is important to note that a small fire damage or explosion of vital equipment could result in business interruption thus resulting in substantial consequential loss claims, whilst a major fire may not necessarily impair productivity.

The policy covers three main items:-
Loss of GROSS PROFIT arising from:

• Reduction in TURNOVER/ REVENUE and
• Increase in cost of working Wages
• Auditor’s Fees
    
  Definition of gross profits for Insurance purpose is the amount by which the sum of:
  Turnover
  The Closing Stock and
  Work – In – Progress (if any)

Shall exceed the sum of:
The Opening Stock
Work – In – Progress and
Uninsured Working Expenses
  
Uninsured Working Expenses:
100% Purchase
100% Carriage packing & Freight (other than insured’s own)
100% Wages
  
N.B All items are arrived at in accordance with the insured’s normal accountancy methods, due provision being made for depreciation.
  
The rate is dependent on the Indemnity period required, depending on the nature of business.

To enable us obtain quotations, we would be obliged if you would advise us of the following:-

The Annual Gross Profit as stated above
The indemnity period required
The amount to be insured as Auditor’s fees we suggest N100,000.00 (One hundred Thousand Naira Only)