Keeping Your Business Afloat When Machinery Breaks Down, Protecting Income and Ensuring Continuity
Sukoon Machinery Loss of Profits (MLOP) Insurance helps protect your business from the financial impact of machinery breakdowns that disrupt operations. Beyond repair costs, such incidents can result in loss of income, reduced profits, and ongoing standing charges that continue even when production stops. This cover is designed to support your business during the recovery period by compensating for these losses until normal operations are resumed. MLOP insurance covers the actual loss of gross profit arising from business interruption caused by an accident insured under your Machinery Insurance, helping maintain financial stability while repairs are carried out.
What’s Covered
- The continuing business expenses (standing charges), including the salaries and wages paid to employees
- The net profit
- The increase in cost of working, i.e, the additional expenditure necessarily and reasonably incurred for avoiding or diminishing a reduction in turnover
Keywords
Sum Insured
It is the gross profits obtained from the turnover of goods produced or handled, services rendered, or revenue or rentals achieved in the course of business for a period of 12 months (i.e, normally for the business year).
Increase in Costs of Working
It is, for instance, the additional expenditure incurred for the use of external power if the insured’s own power supply breaks down.
Indemnity Period
The period during which the insurance will compensate for losses. This is determined by the insured, depending on the replacement period for the machinery to be insured.
YOUR QUESTIONS ANSWERED
We are here to help. Find the most commonly asked Machinery Loss Of Profits (MLOP) Insurance questions.
No, any loss or damage to items that are immediately affected by the above are not covered. However, your insurance can be extended to cover any loss or damage to the correctly executed items resulting from an accident that happened because of faulty design, defective material or workmanship.
No, it's not. It totally depends on you. But we would say that it is advisable.
So, this is how it goes. You will need to estimate the maximum value of the stock that you may be holding at a particular point of time during the policy. This will be considered as the sum insured and the premium rate is charged based on this amount.
At the beginning of each month, you will need to declare the highest value of the stock that you were holding during the previous month. The same will be considered as the declaration for that month. At the end of the policy period, the premium is adjusted based on the average monthly declarations provided by the insured.
To be honest, we don't usually insure plastic factories. However, you can reach out to us and we can come to a decision based on your case.
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