Cover for the financial consequences of unexpected events — business interruption, loss of profits, loss of rent, and more.
Class 16 — Miscellaneous Financial Loss — is the catch-all financial-loss class under Annex I of the Solvency II Directive. It covers a range of pure financial losses that aren't tied directly to physical damage but flow from defined events affecting the business. For most commercial buyers, Class 16 is what makes property insurance actually useful: cover for the income lost while the building is being rebuilt, the rent lost while the tenant can't trade, the profits foregone while production is suspended.
Class 16 is also the class that captures more specialist financial-loss covers — employment-related financial losses, costs of additional working, and indirect trading losses caused by events at suppliers' or customers' premises.
Cover for the loss of gross profit or revenue suffered by a business as a result of an insured physical damage event interrupting normal operations. This is the most common Class 16 cover — and the one that often dwarfs the property damage claim itself in terms of value.
Specifically structured cover for the reduction in profit resulting from an insured event — including standing charges, wages, and additional costs of working incurred to mitigate the loss.
Cover for property owners whose buildings become wholly or partially untenantable following an insured event — protecting the income stream that the property exists to produce.
Cover for interruption losses caused not by damage at the insured's own premises, but at the premises of named suppliers, customers, or utility providers — the cascading risk of supply-chain dependence.
Cover for the additional expense incurred to maintain or resume operations following an insured event — temporary premises, expedited transport, additional labour, and so on.
The Solvency II Directive places a broad range of other financial loss covers within Class 16, including risks relating to: employment exposures, business continuity, certain indirect trading losses, and other defined or scheduled financial-loss perils not falling within other classes.
Industry studies repeatedly show that for many commercial losses, the business-interruption element exceeds the property-damage element — sometimes by multiples. A well-designed Class 16 cover is what turns a property policy from a partial fix into a genuine business continuity tool.
The hard work in financial-loss insurance happens before any claim — in the calculation of the sum insured, the maximum indemnity period, and the basis of cover (gross profit, gross revenue, increased cost of working only). We work directly with brokers and clients on this, because misdesigned business-interruption cover is one of the most common failures in commercial insurance.
We typically write Class 16 cover alongside Class 8 and Class 9 property cover, on a single combined commercial property programme — but standalone Class 16 placements are also possible for specific exposures (loss of rent, contingent BI, employment-related losses).
Our financial-loss team works directly with brokers across the EU.