Damage to machinery will cause interference to the production. In cases where critical machineries are affected, the factory can suffer severe stoppages. This will result in loss of earnings whilst standing charges continue to be incurred. This form of insurance provides cover against loss of gross profit following indemnifiable damage to machinery. In the majority of cases, the loss of gross profit out of damage to machinery far exceeds the cost of repair or replacement.
Cover
The policy covers loss of Gross Profit following an indemnifiable accident (the cover usually follows that of the machinery breakdown policy) and is measured on the reduction in turnover compared to the same period in the last twelve months and applying the Rate of Gross Profit. Cover also extends to include Additional Expenditure reasonably incurred to minimise the loss of Gross Profit. The costs of non productive wages can be included either as treating them as a standing charge, or taking out more specific covers such as Dual Wages. Professional accountants' charges to produce certified details for the Insured's presentation of a claim can be included.
Major Exclusions
a. Loss or damage due to fire and extraneous perils.
b. Loss or damage due to the imposition of abnormal conditions directly or indirectly from testing, intentional overloading or experiments.
c. Loss or damage for which a supplier, contractor or repairer is responsible either by law or under contract.
d. Loss or damage caused by any faults or defects existing at the time of commencement of this policy with in the knowledge of the Insured or his representatives, whether such faults or defects were known to the Insurers or not.
e. War and kindred risks
f. Wear and tear
g. Others
Cover
The policy covers loss of Gross Profit following an indemnifiable accident (the cover usually follows that of the machinery breakdown policy) and is measured on the reduction in turnover compared to the same period in the last twelve months and applying the Rate of Gross Profit. Cover also extends to include Additional Expenditure reasonably incurred to minimise the loss of Gross Profit. The costs of non productive wages can be included either as treating them as a standing charge, or taking out more specific covers such as Dual Wages. Professional accountants' charges to produce certified details for the Insured's presentation of a claim can be included.
Major Exclusions
a. Loss or damage due to fire and extraneous perils.
b. Loss or damage due to the imposition of abnormal conditions directly or indirectly from testing, intentional overloading or experiments.
c. Loss or damage for which a supplier, contractor or repairer is responsible either by law or under contract.
d. Loss or damage caused by any faults or defects existing at the time of commencement of this policy with in the knowledge of the Insured or his representatives, whether such faults or defects were known to the Insurers or not.
e. War and kindred risks
f. Wear and tear
g. Others
