MANAGEMENT

Detailed explanation-1: -In respect of loss of gross profit, the insurer shall pay the amount obtained: by multiplying the rate of gross profit. by the amount by which the actual turnover during the indemnity period falls short of. the turnover which would have been achieved had the delay in start‐up not occurred.

Detailed explanation-2: -Fire Loss of Profit Insurance (FLOP) The Consequential Loss (fire) policy covers Loss of Gross Profit and /or increase in cost of working due to reduction in turnover / output due to operation of peril covered in the Standard Fire & Special Perils Policy.

Detailed explanation-3: -This policy covers the diminished profits and continuing fixed expenditures if your company stops or slows down its operations due damages caused by fire or additional coverages. Damages that may occur in a workplace due to fire or other risks are covered by the fire policy.

Detailed explanation-4: -The actual amount of claim is determined by the formula: Claim = Loss Suffered x Insured Value/Total Cost. The object of such an Average Clause is to limit the liability of the Insurance Company. Both the insurer and the insured then bear the loss in proportion to the covered and uncovered sum.