The Advance Loss of Profit Insurance is like an extension of material damage policies like the Contractors All Risk and Erection All Risk policies. To avail the Advance Loss of Profit Insurance, you must have at least one of these two policies in effect at the time the damage that led to loss of profit.
This policy will cover the following:
- Loss of net profit due to stoppage of business as a result of insured perils
- Standing charges which continue to accrue in spite of stoppage of business
- Additional expenditure you incur to maintain normal business activity during the period in which the business is affected
The policy is mainly intended to cover the principal owner. But, financiers may also be included in the coverage.
The above mentioned list is not exhaustive. Please read the Policy wordings for a detailed list of Inclusions & other details.