Business risk
Loss of profits
Also: Loss of earnings · Business interruption
Guarantee that compensates the margin the company fails to obtain while it cannot operate due to a covered material damage.
In practice
It relies on three decisions: what margin is insured, how many months of indemnity period are contracted, and how many days of waiting period are retained. Getting the period wrong is more costly than getting the capital wrong.
Where it is addressed
This term is covered in Riesgos patrimoniales and applies when taking out Daños Materiales.
