Machinery Loss of Profits
This policy provides coverage for the actual loss of profits, sustained as a result of business interruption caused by an accident.
Loss of Profits following Machinery Breakdown [LOP]. It is designed to provide coverage for the actual loss of profits, sustained as a result of business interruption caused by an accident, indemnifiable under the Machinery Breakdown Insurance Policy.
The consequential loss following a breakdown of machinery, plant or equipment due to a sudden and unforeseen event would sometimes be worse than the extent of physical damage. Production and business comes to a standstill sometimes, but fixed expenses such as salary, wages, interest on capital, rent etc., will continue to be incurred resulting in loss of gross profits and increased cost of working during the interruption period.
In order to have a full understanding of the terms listed below as well as the nature and scope of coverage under the policy, we recommend customers and prospects to study the conditions, exclusions and definitions stated in the policy or contact our technical staff in Engineering Insurance Department.
- Gross Profit
- Net Profit
- Standing Charges
- Annual Turnover
- Limit and Period of Indemnity
- Monetary Excess
- Time Excess
Premium rate is influenced by factors such as total turnover, Limit [gross profits selected], period of indemnity, voluntary time excess, nature & type of risk, location, industry experience , previous loss history etc.,
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