When critical machinery, boilers and pressure vessels in an industrial or manufacturing unit break down, regular operations can be thrown out of gear jeopardizing revenue streams. Reduced turnover along with the additional costs towards ensuring continuity of business are pertinent risks that need to be provided adequate protection. At Reliance, you have the right policy for losses occurring due to accidental physical loss or damage to machinery – the Machinery Loss of Profit Insurance Policy.
The policy covers your business against:
- Loss of gross profit due to reduction in turnover / output.
- Increased cost of working
Due to accidental damage to machinery/ boilers affected in the specified premise consequent upon the operation of an insured peril under the Machinery Insurance policy.
Sum insured is the Annual Net Profit plus Standing Charges based on the latest balance sheet figures adjusted to the expected trend in the forthcoming year of operations.
The policy is subject to adjustment of premium to the extent of difference between actual Gross Profit of the current financial year and estimated profits subject to a downward limit of 50 per cent.
The policy provides for following extensions-
The Reliance Machinery Loss of Profit Insurance Policy does not cover any loss resulting from interruption of or interference with the business directly or indirectly attributable to any of the following causes:
- Willful act, neglect, or gross negligence of the insured or his responsible representatives.
- Loss/damage caused by any faults/defects existing at the time of commencement of this insurance within the knowledge of the insured or his representatives
- Shortage, destruction, deterioration, and damage of raw materials, semi finished or finished products, or catalyst or operating media
- Any restrictions on reconstruction or operation imposed by any public authority.
- 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.
- Loss, damage, and/or liability caused by, or arising from, or in consequence directly or indirectly of war or war like perils
- An extension of the normal repair period for more than 4 weeks on account of -
- The inability to secure or delays in securing replacement parts, machines or technical services
- The inability to carry out or delays in carrying out repairs.
- A prohibition to operate the machinery due to import and/or export customs and other restrictions or by statutory regulations.