Indirect damages in a production company essentially concern all the economic effects deriving from a direct damage (fire, weather events and natural disasters) that may cause production downtime due to the stoppage of a plant.

The main indirect damage is a production downtime caused by the unavailability of a plant damaged by an accident. In economic terms the indirect damage is calculated on the basis of the fixed costs incurred by the company in addition to the loss of profits due to the non-sale of products not manufactured during the downtime period.

Usually indirect damages have a greater economic value compared to the material direct damages that caused them. In order to obtain an insurance coverage for this type of risk it is necessary to take out a specifically designed insurance policy according to three typical forms of insurance: CM (Contribution Margin), LOP (gross Loss of Profit), DAILY ALLOWANCE (daily gross loss of profit).

The estimate of indirect damages requires a careful analysis of the company’s financial statements and production activity in relation to past and future planning of the damaged company in order to accurately represent a full and faithful picture of the effects of damage.

If the indirect damages are caused by the strict liability of a third party, GARAperizie is able to make an accurate estimate and claim for a correct damage compensation in favor of its Client also in the absence of a specific coverage.

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