Consequential Loss Insurance
Protection against financial loss during operational downtime
Protection against financial loss during operational downtime
Protect your business from loss of profit!
A sudden incident can force your business to shut down temporarily. Fire, burglary, or water damage can halt production and cause a loss of revenue – while fixed costs such as wages, rent, and loans continue. Consequential loss insurance – also referred to as loss of profit insurance – protects you from these financial burdens and ensures your business remains capable of action.
Why is consequential loss insurance important?
Damage to machinery or production facilities can have severe consequences for your business. Consequential loss or loss of profit insurance compensates for financial losses by covering ongoing expenses and replacing lost profits. This allows you to focus entirely on rebuilding without worrying about the financial aftermath.
What costs does consequential loss insurance cover?
Consequential loss or loss of profit insurance applies when your company is partially or fully interrupted due to a covered property loss. It typically covers:
- Loss of profit: Lost revenue during the interruption period
- Wages & salaries: Continued payment of employees
- Rent & leasing costs: Ongoing costs for premises and equipment
- Loan repayments & taxes: Financial obligations that remain due
- Additional operating costs: Expenses for interim solutions like rental equipment or alternative production sites
What types of damage are covered?
The insurance protects you from financial losses if your business is affected by the following events:
- Fire: Damage caused by fire, explosions, or lightning
- Burglary & vandalism: Losses due to theft or intentional destruction
- Water damage: From burst pipes, frost, or sprinkler leaks
- Storm & hail: Weather-related operational shutdowns
- Natural hazards: Including floods, landslides, snow pressure, and earthquakes
Tailored protection for your business
Each business has different needs. That’s why consequential loss or loss of profit insurance can be adapted to your situation. Depending on your sector, you can also include:
- Interdependency losses: When damage in one part of your company affects other areas
- Supplier-related disruptions: If your supplier’s operations are interrupted, affecting your own
Secure your business against financial setbacks!
Request a free consultation and find the ideal consequential loss insurance for your business.
FAQs about
Loss of Profit Insurance
Loss of Profit Insurance
A prolonged interruption can quickly put your business in financial distress. This insurance protects you against revenue losses and ensures that your company remains financially stable even after an incident.
- Ongoing operating costs: Rent, salaries, leasing payments
- Lost profits: Revenue losses during the business interruption
- Additional expenses: Necessary measures to maintain operations
Consequential loss or loss of profit insurance is especially important for:
- Manufacturing businesses with machines and production facilities
- Trades and retail businesses that rely on inventory
- Freelancers and service providers who face high fixed costs when their workplace is out of service
The so-called indemnity period defines how long the insurance will provide coverage. This period can be individually agreed and typically ranges between 12 and 36 months.
The premium depends on several factors:
- Type of business and risk exposure
- Sum insured and scope of coverage
- Duration of the indemnity period (12–36 months)
- Business interruptions without a prior insured property loss
- Damages outside the agreed indemnity period
- Losses due to illness or pandemics
No, both terms refer to the same type of coverage. They are used synonymously and describe financial protection in the event of lost income caused by an insured property damage.
