This policy, often referred to as "business interruption insurance" indemnifies your business against loss of productive capacity or future earning power which may occur as a result of loss or damage to the premises and property insured under the Fire/Extraneous Perils.

The policy is normally taken out in conjunction with the fire policy so that when the latter pays for the material damage to property insured under it, the consequential loss policy will pick up the intangible loss that will result from the primary loss of the fire peril.

The items usually covered under this policy are as follows:

• Gross Profit
• Salary and Wages
• Auditor's fees

The sum insured against the item of gross profit should represent the difference in turnover and the total of standing and variable charges.

The sum insured on salary and wages will be what is required to maintain some key staff pending resumption of business while the sum insured on auditor's fees will represent charges that any firm of accountants will make in preparing papers for the insurance claim.

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