Calculate a claim for loss of profits

Depending on of type may be entitled, make a claim for lost profit in addition to the damage that is fire or for other reasons, which insures your company against the insurance that you hold. However, you have to start file to such a demand by the calculation of lost profits from the time of the fire or floods, which can be a confusing and difficult task. Here the step by step guide to the books are this calculation:

Step one: Gross profit

If you want to calculate the profit, you must first assess gross profit after the sale to the profit during the disorder to get can then be multiplied.

The gross profits to calculate, add to net profit of the previous year of the insured scoring and the various charges of last year; the sum of these should the gross profit.

Step 2: Gross profit ratio

Calculate gross profit ratio by dividing the gross profit now by selling the previous year and multiply the resulting number by 100

So GP ratio = gross profit / turnover of the previous year X 100

Step 3: Lack of sales

To calculate the lack of sales, you need to the actual sale to determine who in the same period in the previous year. These have an increase in the sales number will be added. Subtract the actual sales figures of dislocation-period the sum of the two preceding pay to get the deficiency in sales.

Lack of sales = actually a sale during the same period in the previous year

+ Increase of the turnover development

-The actual sales of the programme planning period dislocation.

Step 4: Loss of income: is the loss of profits equal to the lack of sales multiplied by the gross profit rate divided by 100.

Lost profit = lack-of-sale x G.P. ratio/100

To determine the total amount of the claim for loss of profits you can add increase the cost of the work to the loss of gross profit and withdraw savings in fixed fees from this figure.

Fixed fees would have insured all of the expenses mentioned in the insurance policy the profit lost profit calculation. The permanent staff and thus the auditor’s fees, travel expenses to the temporary premises, rent for example issues such as advertising, salaries, taxes, interest on loans, wages of skilled workers, other expenses that can exceed not more than 5% of the described related issues are added to.

If you feel that you can not process the calculation can help, by your examiner, calculate the claim for lost profit. It is imperative that you have all relevant documents that prove your claim.

In addition, you should also consider getting in touch with insurance assessor; the insurance companies need their employees to assess the damage and verify the accuracy of your claim. So in certain difficult situations in your best interest is an expert at your side and work to get. Reviewers will point out anomalies in your claims of insurance, it is politics that can get you meticulously searching for additional coverage.

Assessor can also able to help you in the event that your claim was denied and he might want to be a renegotiation with the insurance company insurance.