The loss of profit insurance can be applied to "disaster" and "emergency" operating insurance programs as well as construction and assembly insurance. Their overriding idea is that the financial situation of the insured person after a damage remains as high as if the damage did not occur.
As a standard, insurance covers the value of lost profits from sales and fixed costs.
The main advantage of profit-loss insurance is stabilization of the company's financial performance and its independence from external events beyond the control of the entrepreneur. Moreover, the process of claim settlement is carried out differently in situations where the insurer is aware of the fact that besides the costs of repair or replacement of assets, they are also charged to the amount of financial loss the company incurs every day. The entrepreneur then is given a chance to return to full efficiency as soon as possible and to maintain the market position.
EIB specialists, when constructing a profit-loss insurance program, take into account characteristics and needs of a Client in this regard. Appropriate selection of parameters of the insurance contract and their adaptation to the company’s individual situation and, in case of damage, proper documentation of the losses suffered is crucial.