What is loss on profits insurance?

Question

What is loss on profits insurance?

Answer 1

Loss of profits insurance is similar to business interruption insurance (BI) but BI is what is used in the USA, and Loss of profits is what is used most every where else. There are some differences, but not sure exactly what they are. Basically, if your business suffers a loss of income after sustaining a loss from a covered peril, (ie fire), Business Income or Loss of Profit insurance will pay for the difference of profit you would have earned if you did not suffer a property loss.

Answer 2

i am watching this too. I just started a snow plow biz and when the unexpected happens this sounds great if it has a reasonable price

Answer 3

I think what you are referring to is coverage that is designed to cover a business should something happen that causes the company to be unable to operate.  This is often called business interuption insurance.  

Snow-plow guy - This would not cover you if it did not snow.  However, it could cover you if you lost your snow plow in an accident.  I would ask our agent.

Business interuption coverage is not a guarantee of profit, it is a guarantee that should your business become shut-down due to a fire, flood ect, that the carrier would pay your company money to allow it to continue to pay salaries Ect.

I am not a property and casualty producer, I am in health insurance and only know about this from working with PC producers.