INSURANCE AGAINST FINANCIAL LOSSES DUE TO BUSINESS INTERRUPTION

Insurance against fi nancial losses due to business interruption (loss profi t insurance) is concluded as supplementary insurance, along with insurance for basic risks related to property or assets. In business interruption insurance, the insurer is obligated to pay compensation for indirect damage caused by the inability to use property, machinery, or facilities. This means that there must be a causal connection between the realization of the basic risks and the occurrence of indirect damage. This type of insurance is primarily concluded by individuals engaged in certain activities, regardless of whether they are legal entities or entrepreneurs. However, the damage that occurs due to business interruption must be caused by external circumstances and cannot be related to the business of the insured entity itself. One of the most important issues in business interruption insurance is related to the calculation of compensation, that is, the determination of lost profi ts and costs. In the paper, the author also discusses risk management and forecasting in business entities, with particular attention to the most important elements of the special terms and con ditions of insurance in this fi eld.

Keywords: losses, business interruption, loss profi t insurance, supplementary insurance, basic risks, indirect damage, lost profi t, business costs.