Loss of Profit

Commercial Insurance

Loss of Profit Insurance

When a company or business suffers a loss, it causes apparent damage and leads to long-term economic losses. These losses can result in a loss of earnings, which is why it is crucial to have insurance coverage to replace what has been lost. Additionally, it is equally important to have insurance coverage for the loss of profits that may result from such a claim.

There are different ways to take out this guarantee, such as based on the company’s permanent expenses, establishing a daily indemnity, or based on the gross profit. It is essential to have such coverage to mitigate the financial impact of any loss.

The insurance company will compensate you for two things:

  1. The loss of profits that occur during the period specified in the policy due to the claim.
  2. The general expenses that your company continues to incur after the claim if its activity is interrupted.

This means that your company will have some stability in terms of profits even if an event occurs that would cause profits to decline or disappear.


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