Under a traditional comprehensive office insurance policy, cover for office contents, money, liabilities and EC are included. There is a section that not many customers are fully aware of, which covers for loss of gross profit. In fact, we believe this section offers a good option to customers to recover its gross profit when business is interrupted. However, attention is needed when taking out this section of this policy to prevent future dispute.

Important points to note:

1. Customers are required to submit information in 3 areas for working out premiums:
   1. Anticipated gross profit
   2. Maximum indemnity period
   3. Sum insured required
2. The amount of anticipated gross profit should be made on the basis of the actual gross profit in the last 12 months at least. You are not encouraged to estimate with gut feel.
3. There were cases in which customers mistakenly anticipated gross profit based on the maximum indemnity period which was less than 12 months. These customers were found to be under-insured to cover against the actual loss.

When our claims department receives a claim submission for the loss of gross profit, it is essential to determine whether the underlying factors for such business interruption event would fall within the scope of the policy. Compensation will be made based on the reported losses, the customer's previous sales record, the sum insured as well as the indemnity period.

Any underestimation of the amount of anticipated gross profit may cause the customer to suffer all or part of the losses.

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