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Will the Consorcio give me compensation for unfitness for habitation of the house or loss of rents, Loss of production, Loss of Profits, Stoppage of sales, Consequential damages, Closure of the business, Halting of assembly/production lines?

Will the Consorcio give me compensation for unfitness for habitation of the house or loss of rents, Loss of production, Loss of Profits, Stoppage of sales, Consequential damages, Closure of the business, Halting of assembly/production lines?

Yes, but under certain conditions. The Consorcio gives compensation for direct damages to the goods and the loss of profits that are a result of direct damages. In order for there to be cover from the Consorcio for the loss of profits as a result of direct damages, it is necessary for:

  • The policy holder to have an ordinary policy with the compulsory surcharge in the Consorcio's favour that establishes the cover for this type of damage.
  • It is understood that a loss of profits has occurred when there is an alteration in the normal results of the insured subject's economic activity derived from the halt, suspension or reduction in the production or business processes of the aforementioned activity (for example, economic loss for stoppage of sales due to the direct damages produced by a flood in some cold storage rooms for food).
  • The quantification of the loss of profits, the part of it that may be compensated by the Consorcio and the periods of cover and of compensation, will be the same as those stated in the ordinary policy.
  • Notwithstanding the above, it must be taken into account that the Consorcio, when valuing the loss, is not bound by the valuations which, if applicable, the insurance company that covers the ordinary risks has made, but rather the Consorcio's appraisal is independent. It is necessary for the loss of profits to be a result of a direct damage of the insured goods on the policy itself or on a different one.
  • Finally, the insured goods must belong to or be at the disposal of the insured party. Consequently, the loss of profits would not be covered when they are at the disposal of individuals or corporate bodies other than the insured party, who have not been able to be supplied as a result of the extraordinary event.