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What is loss of profit policy in insurance?

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تم إضافة السؤال من قبل mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice
تاريخ النشر: 2014/02/01
Mamoun elbaghir abdalla mhamad Eltayeb
من قبل Mamoun elbaghir abdalla mhamad Eltayeb , Insurance agent / Producer , Albaraka Insurance Company

 It is a consquiential loss resulting from direct loss or damage. In an insurance policy the sum insured for consequiential loss should be stated as will as indemnity period this of course to determine the insurance company liability and responsibility for the consequiential damamage.

 for example / Fire insurance policy covering factory property , machiniers and finished products sum insured amount =10,0000,000

Loss of profit amount =3000,000

indemnity period5 years

The obligation of the insurance company for loss of profit here is15,000,000

Thanking you

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