- What is ‘loss gross profit’ Insurance?
- What is ‘increased cost of working’ insurance?
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What is ‘loss gross profit’ Insurance?
Take this example: A fire destroys your office and puts your business out of action. You have insured your stock and contents, maybe your building too, so these will be replaced under the sums insured. But while you’re out of action, you aren’t making any profit and your business isn’t growing.
Loss of gross profit cover is in place to pay your rent, wages and all necessary over-heads whilst you are unable to trade.
Once you’re back in your premises and trading again, your business insurance will continue to cover your expenses while you recover but it could be months or years before you can get back to the point you were at before the incident. Inevitably the longer you are out of action or spending resource on recovering, the longer you go without growing. Your business insurance can’t pay-out forever and even if you claim for every loss you suffer, you’re not making profit and the fall out, even after you’re up and running can keep costing you for years to come.
