Machinery Loss of Profit

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 pre-damaged level.

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 Profit
    • Time required for repair/ or replacement of equipment’s
    • Spare parts availability and criticality of equipment
    • Indemnity Period
  • 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 of –
    • 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.
    Alterations improvements or overhauls being made while repairs or replacements of damaged or destroyed property are being carried out.
  • Political risks
  • Nuclear reactions
  • Nuclear radiation or radioactive contamination