What are the Factor which leads towards loss of profits and how can we get covered??

Your question is having numerous permutation combinations. It may answered from a financial view, strategic planning view, resources limitations, loss prevention, human resources and management and so on...

However, the major key performance indicators could be divided into 2.

1. Leading indicators: - Lack of - strategic planning, inventory management, resource utilization, specific consumption of raw materials, energy & utilities, inadequate or inexperienced leadership and employee force, financial resource management and future expansion / vertical growth management with diversified product management associated with market surveys.2. Lagging indicators - Drop in production against targets, Quality issues and customer complaints, improper execution of planned maintenance, frequent failure of (LOPA) protection measures, incidents & accidents, outages, partial or full power failures (blockout) and lack of backup, improper inventory management, inadequate MIS, less morale among work force or less motivation, low salary or benefits than the market and so on.A root cause analysis will indicate the action plan which should rsult in short term and long term measurable / quantifiable results.  The Potential Failure Mode and Effects analysis will include the current global scenarios, political imbalances and trading blockades. Trust, I tried to answer to the best possible, in short.

Loss of Profit to bussiness could be due to interuption of the business due to any factor. And to cover such losses Business interuption insurance is available.

To calculate the loss take gross and net profit statement of the last year, Annual turn over, Also check the policy wording the method agreed for calculation of the loss. Any other loss to the earning due to business interuption.

 Loss of profit is a consequential loss following direct loss such as loss of rent or loss of profit which incorporated with fire insurance policy and held covered  as well as in other classes of insurance , hence you can request insurance company to extend coverage to include loss of profit along with your original insurance policy.

  Thanking you , with My very best wishes. 

missing the hidden costs in terms of not applying professional procedures resulting in waste of money and time.

There is a need to make a difference whether the production unit is insured, and in what way. Because there is direct and indirect damage. They only have good prevention in terms of fire protection, as well as people in maintenance that are very experienced. The same loss of profit can also be viewed in poor security personnel, who do not do their job because they are poorly paid, or are not well-trained.The same should include new technology that would reduce theft by theft of goods or documentation that is very important. In my opinion, it is best that the monitoring system is always correct and that it must have an UPS system. Within each company, there should be a telephone system that will anonymously inform employees of an illegal act, as most of the good people who do honestly do not want to be involved in theft. But under one condition it is anonymous. And that the person who receives this information is the maximum one. And he just needs to know such information. I hope that I help you. Bye.

• profit could be lost due to ineffective processes and procedures.
• poor brand management could lead to loss of goodwill which may impact negatively on business continuity.
• poor market information management leading to leakage of productive strategies to poachers in the competitive community.
• poor staff welfare could lead to sabotage and poor performance.

1. similarly, successful organisations put people first, so in this regard, i would say better package for staff would reduce the tendency to get de motivated.
2. if a companys brand is not well managed for sustainability, consumers may shift base to more attractive brand and this would affect the profitability of the company in no time.
3. Security processes and procedures must be designed towards asset protection in order to safeguard the companys assets.
4. Information must be guided effectively to avoid leakage to competitors.

if any organization is facing loss instesd of profit then its important to policy and procedures must be rviewed. changes required in strategies, machine or staff.

Profits and revenue from clients will lead businss continuity plan. Ensure standards are maintaining by all employees of the organization. Avoid all types of penalities from all government and law enforcement agencis. Avoid employees registering complaint againist the Company in Ministry of Labour. Coordinate with clients and ollecct payments as per contract terms. Avoid acccends and accidents due to human error. All storage rooms need to stock materials as perr local agencies advice. Avoid fire incidents and  damage of Company properties

There are many factors affecting loss of profit. Such as:

Over supply less demand.  The demand be should sustain by supply .

Poor strategic planning. Planning stage is critical in analizing your location to the buying power of the residence in your area.

Over spending. Sometimes the owner is spending much more of his profit. Owner should less spend in a way that it is not priority in his bussiness.

Capital against expenses. Business analysis should be focus on return in a month or year to caculate his profit otherwise if youns is foe 5 to 10 years of business cycle you should have addition Capital to recover or if you insured you business.