Chances are you’ve come across the term whilst searching for a policy. So what is consequential loss exactly and how can business interruption insurance help?
Insurance is ridden with tricky terms, like much of the financial industry. Our predecessors didn’t make things easy, and some phrases demand a dictionary – consequential loss a clear example of the baffling lingo.
In truth we could tackle dozens of terms (we will in time… ) but for now let’s focus on consequential loss, starting with a definition.
Consequential loss: a definition
A consequential loss is an indirect loss that accompanies an insured loss, for example the loss of earnings arising from a property fire, experienced by a business insured against fire. Business interruption insurance can help businesses cope with these losses and many insurers offer the cover within their product lines.
So, what businesses could the cover suit?
Pubs, shops and restaurants are clear examples of businesses the cover could help. Disasters could seriously impact on their ability to trade, but with consequential loss insurance they’d be better placed to get back on their feet. Essentially it’s an extra form of support in the aftermath of expensive setbacks.
Elsewhere, it can be a helpful cover for people working in trades, as a consequential loss claim could help cover the cost of lost tools and equipment. Say a flood struck a mechanic’s property and all their tools were damaged, then consequential loss insurance could provide financial support in face of their lost income.
Can you get the cover with Simply Business?
Through our panel of providers we offer business interruption insurance, which can cover the consequential loss caused by disasters. Built for a variety of businesses it can:
- support you back to trading
- help you pay your employees
- keep you going while you rebuild
A key cover, it’ll help you get back to business should unforeseen events strike. Visit our specific business interruption insurance page if you’re keen to learn more, or alternatively click on the start your quote button below to go straight to our quote form.
Do you have any more questions about consequential loss insurance? If so, post them in the comments below.