Consequential Loss Insurance

The IGI Consequential Loss Insurance Policy is suitable for Business establishments and corporate organisations to whom business interruption would mean heavy monetary loss in view of huge fixed costs levels


The IGI Fire Consequential Loss policy provides cover for expenses and increased cost of working as a result of business interruption following a loss covered by the fire policy. Insurance cover can be taken for the maximum period (Indemnity period) of the anticipated interruption in the event of loss.


Extra Covers

In addition, the supplier’s and the customer’s premises on which the business is dependent and cost of auditors fee (required to submit the monetary claim) can also be insured.


Because of the business interruption following a loss, there may be a reduction in turnover and this may affect the anticipated gross profit. Fixed costs are to be incurred immaterial of the production activity. Consequential Loss policy covers reduction in gross profit due to business interruption. The additional expenditure necessarily incurred for avoiding or reducing the fall in turnover during the interruption period are covered under this policy.



Premium chargeable depends on the type of industry or business, the anticipated gross profit, indemnity period chosen and additional covers required.



  • Basic fire policy to cover the assets at the business premises is a prerequisite as loss should first be admitted under the fire policy
  • Before claims can be made under this cover, the amount of gross profit required to be insured, the indemnity period, details of the business premises to be covered and additional covers required shall be provided in the proposal form.