Machinery Loss of Profits Insurance
Why take Machinery Loss of Profits Insurance?
Machinery Loss of Profits insurance provides cover for the actual loss of gross profit sustained as a result of a business interruption resulting from an accident that can be indemnified under machinery insurance.What does Machinery Loss of Profits insurance covers?
1. The continuing business expenses (standing charges) 2. The net profit 3. The salaries and wages paid to employees 4. The increase in cost of working i.e. the additional expenditure necessarily and reasonably incurred for avoiding or diminishing a reduction in turnover.What does Machinery Loss of Profits not cover?
-Willful act or willful neglect or gross negligence-Loss or damage caused by any existing faults or defects at the time of commencement of this insurance within the knowledge of the insured or his responsible representatives
-Shortage, destruction, deterioration and spoilage of or damage to raw materials, semi-finished or finished products or catalyst or operating media (such as fuel, lubricating oil, refrigerant, heating media and the like) even if the consequence of material damage to an item indicated in the list of machinery insured is involved.
-Any expenses associated with the delay of repairs like:
1. The inability to secure or delays in securing replacement parts, machines or technical services.
2. The inability to carry or delays in carrying out repairs.
-The prohibition to operate the machinery due to import and/or export customs & other restrictions or by statutory regulations.
1. Transport of parts to and from the Insured’s premises. Alterations improvements or overhauls being made while repairs or replacements of damaged or destroyed property are being carried out.
-Political risks
-Nuclear reactions
-Nuclear radiation or radioactive contamination etc.