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Loss of Profit Following Fire

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This policy is essential for manufacturing companies. It makes funds available for the continuity of the business after loss by fire.

This is an important policy for all manufacturing companies. The policy enables the owner to continue meeting the essential costs during period of restoration of property following fire.

There are certain costs which will not reduce in the same proportion as the damage caused. These are called standing charges. It is also important to ensure that the business meets the expected profit. Similarly it is important to ensure that the business retains important key staff.

All these are covered under a loss of profit policy. There are also other loss of profit policies such as following machinery breakdown.

In some cases particularly for commercial undertaking it is not possible to have policy based on gross profit. These policies are issued on basis of loss of revenue.