The Loss of Profits insurance covers the profit that is lost due to an accident that makes it impossible for the company to produce normally, thereby generating losses. This insurance ensures that the insured person is compensated in the event of a loss of economic performance.

At UBICA we advise you on the capital to be hired to cover a possible contingency that may affect your company’s turnover. We will look for coverage that may interest you and follow up on the policy for the entire duration.

About the Loss of Profits Insurance

Loss of Profits insurance, also known as Loss of Profits, aims to leave the company in the same economic situation that it would have obtained in the absence of the claim of material damage. To achieve this purpose, the insurance company will indemnify both the benefit it no longer obtains due to the accident, as well as the permanent expenses of the business.

Usually, the Loss of Profits is contracted as an additional guarantee to a damage insurance. Even so, it can be hired as an autonomous and independent insurance. What is important to know is that the coverage contracted by this insurance is conditional on a triggering event initiating a freeze or decrease in the company’s sales. This triggering event can be a fire, electrical damage, damage covered by the Insurance Compensation Consortium, damage agreed and suffered by the insured, a third party, customer or supplier.

In determining the insured capital, account shall be taken of the turnover of the insured undertaking in the annual period immediately preceding that in which the insurance cover was taken out. It is therefore important to bear in mind the evolution of the company in order to avoid the application of the rule of proportional under-insurance if it ends up guaranteeing a lower capital than real. There is the option to contract an adjustment clause that gives flexibility to the insured capital by a percentage higher and/or lower than the contracted amount.

In addition to the coverage of the company’s fixed costs and profits, the risks of premises of major suppliers or customers that may affect the insured company’s turnover can also be covered. The lack of supplies such as electricity, water, gas,... And you can also ensure the fact that it is impossible to access the premises of the insured company with what prevents production.

Other contingencies and financial losses

  • Insurance against non-appearance of actors: aimed at actors and artists for cases of illness and accident, when this implies the impossibility of preventing the contract. Compensation up to 75% of the anticipated fees.
  • Cancellation insurance for shows: for promoters covering risks beyond their control that involve cancelling the show, even for lack of public attendance.
  • Weather or rain insurance: minimum intensity of 3 liters/m2, minimum wind of 60 km/h, lack of sun or snow that affects the activities determined in the policy.
  • Delay insurance: additional costs or loss of benefits and penalties for failing to arrive at your duty station on time
  • Insurance of loss of profits due to the absence of sun in photovoltaic installations: specialization of insurance by technological elements. The payment of the difference between the expected performance and the actual performance obtained during the coverage due to the decrease in hours and solar intensity is guaranteed.
  • Hole in One in Golf: when a participant in a golf tournament manages to put the ball in the hole with one stroke
  • And other contingencies: