Machinery Loss of Profits Insurance

Machinery Loss of Profit Insurance

Damage to plant and machinery or boiler explosion at your premises may also interrupt your business operations. This often results in the reduction of turnover/output and can have a direct impact on your profits.
Our Machinery Loss of Profit insurance.
provides coverage for such consequential loss suffered by the insured as an inevitable consequence of accidental breakdown of any plant and machinery or Boiler explosion as covered under the Machinery Breakdown / Boiler and Pressure Plant Policy.

Machinery Loss of Profit insurance covers

  • Loss of gross profit due to reduction of turnover/output
  • Increase in the cost of working:the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in output


The basic requirement is that the loss of gross profit and/or increase in the cost of working has to be a consequence of the damage due an insured peril under the material damage policy.

Any loss/damage to the vehicle and/or its accessories will not be covered if caused by any of the following events:

  • War or war-like operations, nuclear reaction, radiation or radioactive contamination
  • Willful acts or gross negligence on your or your representative’s part
  • Loss or damage caused by any faults or defects existing at the time of commencement of insurance which ought to have been or were known to you and not disclosed
  • Any restriction on reconstruction or operation imposed by any public authority
  • Alterations improvements or overhauls being made while repairs or replacements of damaged or destroyed property are being carried out

Additional Covers

The Machinery Loss of Profit insurance can also cover the following:

  • Wages
  • Auditor's fees

The rating depends on:

  • The list of the machinery to be insured including the critical machinery
  • The lead time for these machines depending on whether they are imported or indigenous.
  • The effect of machinery breakdowns on the operating profit and standing charges (factor of relative importance)
  • The reserve facilities and spare parts available
  • The maintenance schedule of the machinery



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