Loss of profit

There is concern with accidents that cause damage to plants and loss of profit but do not injure anyone, as well as those that do cause injuiy. 

Many organizations fail to appreciate the scale of their quality failures and employ financial systems which neglect to quantify and record the true costs. In many cases, the failures are often costs that are logged as overheads . Quality failure costs represent a direct loss of profit Organizations may have financial systems to recognize scrap, inspection, repair and test, but these only represent the tip of the iceberg as illustrated in Figure 1.7. 

Business interruption policies (also known as loss of profits or consequential loss) are designed to cover the trading loss due to the occurrence of the fire or other insured peril. This loss is normally identified either by a reduction in turnover as a result of the disruption caused to the business or by increased costs incurred to minimize the loss of turnover, or indeed a combination of the two. The cover under the policy does not last for an indefinite period after the loss but is restricted to a time scale expressed in the policy as the maximum indemnity period. This time limit is chosen by the management of the business, and is the time they think that they would need to recover the trading position of the company following the incident. With fire insurance, there is a limit to the amount payable, which is the insured sum chosen by the management of the business. 

Limit of Liability/Disclaimer of Warranty While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties withrespect to theaccuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. 

LIMIT OF LIABILITY/DISCLAIMER OF WARRANTY THE PUBLISHER AND AUTHOR HAVE USED THEIR BEST EFFORTS IN PREPARING THIS BOOK. THE PUBLISHER AND AUTHOR MAKE NO REPRESENTATIONS OR WARRANTIES WITH RESPECT TO THE ACCURACY OR COMPLETENESS OF THE CONTENTS OF THIS BOOK AND SPECIFICALLY DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE DESCRIPTIONS CONTAINED IN THIS PARAGRAPH. NO WARRANTY MAY BE CREATED OR EXTENDED BY SALES REPRESENTATIVES OR WRITTEN SALES MATERIALS. THE ACCURACY AND COMPLETENESS OF THE INFORMATION PROVIDED HEREIN AND THE OPINIONS STATED HEREIN ARE NOT GUARANTEED OR WARRANTED TO PRODUCE ANY PARTICULAR RESULTS, AND THE ADVICE AND STRATEGIES CONTAINED HEREIN MAY NOT BE SUITABLE FOR EVERY INDIVIDUAL. NEITHER THE PUBLISHER NOR AUTHOR SHALL BE LIABLE FOR ANY LOSS OF PROFIT OR ANY OTHER COM-MERCIAL DAMAGES, INCLUDING BUT NOT LIMITED TO SPECIAL, INCIDENTAL, CONSEQUENTIAL, OR OTHER DAMAGES. ... 

---