Consequential Loss Policy

The Consequential Loss policy provides protection to the insured business for its own financial losses incurred as a result of interruption following an event during the period of insurance.

In order for the policy to operate a claim must be made and indemnity confirmed under either a Public, Statutory or Employers Liability policy underwritten by Vero Liability. This is the policy “trigger”.

The proposer is required to identify which of its existing liability policies it requires to operate as a trigger policy.

Basis of Claims Settlement

Coverage is provided for:

  • Extra costs incurred in order to minimise turnover reduction in a manner similar to a traditional first party Consequential Loss policy.
  • The sum equivalent to the loss of the Insured's gross profit and or the increased costs incurred by the business after making all adjustments which in Vero Liability's discretion, fairly reflect any trends, variations or other special circumstances in the business.
  • The costs of an accountant approved and appointed by Vero Liability reasonably and necessarily incurred in the preparation of a claim.
The Liability Consequential Loss policy will provide cover for a period of up to 12 months from the date when the Insured was required to first notify Vero Liability of a claim or circumstance.

Our aim is to adjust any loss in a manner which represents the financial performance of the business that would have been attained during the indemnity period had there not been an occurrence. The maximum indemnity period is 12 months.

Policy Limit and Co-insurance
  • The maximum policy limit provided by Vero Liability is $1m any one claim and in all during the period of insurance.
  • The indemnity available is limited to 90% of the policy limit with a maximum of 40% payable during any 3 month period.
  • The maximum amount of any claim is 90% of the actual loss or 90% of the limit of indemnity which ever is the lesser amount.
  • The insured is required to bear the remaining 10% to its own account.

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