Machinary Loss Of Profit

MLOP cover is issued in conjunction with Machinery Breakdown Cover.(MBD)

In the event of any interruption to your business – total or partial, as a result of damage to your machineries due to sudden internal causes like Mechanical / electrical breakdown or explosion/ implosion in boilers etc., this cover enables you to recover:

  • Loss of Gross Profit due to a reduction in turnover.
  • Increased Cost of Working incurred in minimizing that loss of Gross Profit.

 

Sum Insured :

Gross Profit  either Turnover basis or Output basis (However, by opting for the Alternative Basis clause the above terms may be substituted, if required.)

 

Excess:

14 Days Standard Gross Profit.

 

Period of Indemnity:

Indemnity period is the maximum for which insurer is liable to compensate for loss of gross profit.

This can be determined by insured considering worst scenario & time required to resume pre loss production.

This can be selected from 1 month to 12 months.