Loss-of-Profits insurance is intended to cover losses to a business following physical damage by fire or breakdown, until turnover has recovered to a similar level to that prior to the damage.
It requires that a fire or machinery breakdown policy has been effected by the insured.
Cover is for a maximum sum insured representing the insured's gross profit and the increased cost of working for the anticipated period that production is interrupted following the physical damage, and for a maximum indemnity period representing the anticipated period to restore the business to normal operations and profitability.