It should be noted that the optional cover for business losses only guarantees losses suffered as a result of interruption or reduction of the activity of the insured company as a direct consequence of a claim compensable under the coverages contracted in the basic multi-risk policy: Fire, Mechanical Action of Lightning Strikes and Explosion, Storms, Floods, Water Damage, Aircraft Crashes and Crossing the Sound Barrier, Shock or Impact of Land Vehicles and/or Animals, Strikes, Riots and Alterations of Public Order, Acts of Vandalism or Malicious Acts.
Machine Breakdown cover can also be taken out under Operating Losses (in industry this cover is a very important risk management tool, since a factory may be forced to interrupt production as a result of a serious machine breakdown, interrupting the entire production chain and causing financial losses).
As a rule, the Operating Loss Cover has a 3-day excess and Companies may opt for a compensation limit of 3, 6, 9 or 12 months.
Definition of Capital to be Insured Operating Losses
Corresponding to the Annual Gross Profit, calculated according to one of the following criteria:
- Sales - Variable Costs, or
- Fixed Costs + Net Profit