Briefly explanation of formula

Loss of Stock: Focuses on finding what inventory should have been there on the day of the disaster ($\text{Stock} = \text{Opening} + \text{Purchases} - \text{COGS}$) and scales the claim if the business was under-insured.

Loss of Profit: Focuses on protecting your bottom line. It calculates how much sales dropped ($\text{Short Sales}$), applies a specific $\text{GP \%}$ (Net Profit + Fixed Costs), adds extra costs to keep running, and applies an average clause against the yearly adjusted turnover.