MACHINERY LOSS OF PROFITS INSURANCE

Introduction

When machinery in a factory break down, not only is there  expensive repairs to be incurred but interruption in the flow of  business. This usually comes in the form of time spent in arranging repairs, awaiting delivery of new repaired parts (sometimes from overseas), starting up the plant & re-activating the business.

The principals in respect of this insurance are almost identical to the Fire Loss of Profits Policy.

Scope of Cover

The cover provided under this policy shall be limited to loss of gross profits due to reduction in turnover and increase in cost of working and the amount payable as indemnity shall be:

1) in respect of reduction in turnover and
2) in respect of increase in cost or working i.e:

• the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction of turnover.
• How the Policy is activated

The Policy becomes operative following:

• Unforeseen and Sudden damage to the insured machinery from any cause covered by the Machinery Breakdown Policy or
• Damage to the itemized machinery from any cause covered by the Boiler Policy.

Important Note
The Policy is not activated unless the material damage claim is paid or liability is admitted in respect of such damage.

For further information about this product, please contact our nearest branch and our customer service staff will gladly assist you.