This policy covers indirect loss which accompanies an insured loss, such as loss of earnings resulting from fire or special risk damage. The policy is normally taken out in conjunction with the fire policy so that when the latter pays for the material damage to property insured under it, the consequential loss policy will pick up the indirect loss that will result from the primary loss of the fire peril.

The items usually covered under this policy are as follows:

1. Gross Profit
2. Salary and Wages
3. Auditor’s fees