Machinery Loss of Profit Insurance Policy
Your business is
an extension of you. It is the sum of the efforts and aspirations of your staff
and your near and dear ones.
When it comes to protection of
your business and assets, HDFC ERGO is known as the best insurance firm who’ll
get you back on your feet with minimal fuss. In fact, we go one step further and
cover you for the losses you incur from disruption to your business following a
fire. So that you can catch a break knowing that the best people will support you
through the financial consequences – the after effects of the devastation.
HDFC ERGO is with you all the way till your business is restored to its
This policy is Ideal for SME’s
and Corporates alike, those who need coverage for their business against uncontrollable
situations that can devastate property and businesses.
- MLOP cover is issued in conjunction
with MB Cover.
In the event of any interruption to your business as a result of damage to your
machineries due to any peril insured under the Machinery Breakdown Policy, this
policy enables you to recover:
- Loss of Gross Profit due to
a reduction in turnover
- Increased Cost of Working incurred
in minimising that loss of Gross Profit
- For a additional premium, the policy can be extended
to cover the risk of terrorism.
Gross Profit (i.e. Net profit + Standing Charges)
- Premium depends upon
- Annual Gross
- Time required for repair/ or replacement of equipment’s
- Spare parts availability and criticality of equipment
The policy is subject to a compulsory excess.
- 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 extension of the normal repair period for more than 4 weeks on account
or overhauls being made while repairs or replacements of damaged or destroyed property
are being carried out.
- The inability to secure or delays in securing
replacement parts, machines or technical services.
- 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.
- Transport of parts to and from
the Insured’s premises.
- Political risks
- Nuclear radiation or radioactive contamination