Redefinition of Loss of Profit and Its Comparison with Similar Concepts

Lack of a clear definition of loss of profit and confusing it with similar concepts has led to its ambiguity. Such ambiguity can be seen in the theoretical analysis as well as in the practices of the courts. This ambiguity persists while the concept of loss of profit has an important presence in industry، manufacturing and trade. Hence this concept has been accepted in the insurance industry in Iran and worldwide. This paper، through redefining the loss of profit and its comparison with similar institutions in the context of comparative studies، gives a clear definition of it، and shows that loss of profit is conceptually different from loss of benefit، loss of chance and economic loss. The study further reveals that the unconditional rejection of loss of profit، loss of benefit، loss of chance، and economic loss is in conflict with the economic، industrial and social realities، and that in certain cases، compensation should be awarded by applying common practice criterias.