LOSS OF PROFITS (CONSEQUENTIAL LOSS) INSURANCE


The loss of profits policy covers the building, plant, machinery, stock, fixtures, fittings, loss of profit, the payment of standing charges, any increased working expenses during the interruption of a business by the happening of the insured against risk. This policy is complementary to the fire policy and prior to payment, the insurer must have accepted liability under the fire policy.

LEASE GUARANTEE (RENT PAYMENT) INSURANCE AND PROPERTY MANAGEMENT INSURANCE

This is a very useful landlord policy under which the landlord is paid any loss of rent upon default in payment by the lessee. It can be extended to cover any damage to the premises caused by the lessee. Property management insurance is more comprehensive. A typical property management policy covers:

• LOSS OF RENT THROUGH:

• Defaulting tenant: 6 weeks
• Undue departure of tenant: 6 weeks
• Prevention of access: 6 weeks
• Premises untenantable: 52 weeks
• Legal expenses: $x.

• CONTENTS:

Sum insured $20 000. Similar to a Homeowners and Householders policy.

• BUILDING GAP COVER:

Sum insured $20 000. Covers the landlord's building against loss or damage resulting from riot, civil commotion or theft. Malicious damage by all persons including tenants.

• LEGAL LIABILITY:

Sum insured $5 000 000. Covers the legal liability of the landlord as owner of the property for liability claims arising from accidental death, bodily injury or illness contracted by any person and accidental loss of or damage to property not belonging to the insured.




See:

landlords property protection insurance
farm insurance