Fire loss of profit insurance;

What is Fire Loss of Profit Insurance?

Fire Loss of Profits Insurance policy covers against losses resulting from the interruption of or interference with the trading or business activity caused by fire, lightning, explosion of gas used for domestic purposes, and any other peril insured under the Fire Policy.

Why do you need Fire Loss of Profit Insurance?

The Policy covers consequential losses arising from risks covered under fire and allied perils section. Examples of such consequential losses include loss of profit, rent, wages or increase or additional expenses in the cost of working within a given period.

What does Fire Loss of Profit Insurance Cover?

You may insure the following interests under a Fire Consequential Loss Insurance Policy:-

  • Gross Profit/Gross Revenue/Gross Rental
  • Standing Charges
  • Wages
  • Increased in Cost of Working
  • Auditor’s Fees


Upon payment of additional premium, the policy can be extended to cover the following:

  • Accidental failure of public electricity/gas/water supply
  • Damage to customer's premises due to perils covered under Fire Insurance Policy
  • Damage to supplier's premises due to perils covered under Fire Insurance Policy
  • Infectious or contagious diseases, murder, suicides, pest, food or drink poisoning or defective sanitary arrangement.

What are some of the key terms and conditions that I should be aware of?

  1. Duty of disclosure

You must disclose all material facts which you know or ought to know which would affect our underwriting consideration of your proposal. Otherwise, your policy may be null and void.

  1. Sum to be insured

You may insure on an estimated sum insured in consideration of your Gross Profit / Gross Revenue / Gross Rental for previous year, as per your statement of account plus projected profit for the current year, if any. If the actual amount earned during the period of insurance is less than the estimated sum insured, a pro-rata return premium not exceeding fifty per cent (50%) of the provisional premium paid will be allowed in respect of the difference.

  1. Impact of insufficient sum insured

If the sum insured for Gross Profit/Gross Revenue/Gross Rental in your policy is less than the actual amount at the time of loss, you are deemed to have underinsured and have self insured the difference. This average condition will apply in the event of a claim.

  1. Premium Warranty

Premium must be paid and received by us within 60 days from the inception date of the cover, otherwise the cover is automatically cancelled and you will still be responsible to pay the proportion of premium for the period we have been on risk.

  1. This policy shall cease if your company be wound up or carried on by a Liquidator or Receiver or permanently discontinued.
  1. This insurance can only be granted when the Fire Insurance is taken up with us (Goldstar Insurance Co. Ltd).