Reliance Machinery Loss of Profits Insurance Policy
Features
Breakdown and Failure to the critical machinery, boilers or pressure vessels in any industrial or manufacturing unit can threaten to interrupt the regular operations and jeopardize revenue streams. Reduced turnover along with the additional costs towards ensuring continuity of business are pertinent risks that need to be provided adequate protection. For this purpose, Reliance General Insurance presents its Machinery Loss of Profits Insurance Policy, which covers business losses arising out of unforeseen accidental physical loss or damage to machinery.
Key Benefits
• Specialized product covering financial losses consequent upon breakdown or failure of important machinery
• Offers exhaustive coverage along with the machinery breakdown policy for all risks associated with boilers, pressure plants and industrial machinery
• Extensions available to cover wages and auditor fees
Few Definitions
• Gross Profit means Net Profit plus Insured Standing Charges
• Net Profit means Net Trading Profit less all capital receipts / accretions / outlays chargeable to capital less all standing and other charges including depreciation, before tax from specified business and specified premises
• Trading Profits means profits from selling goods dealt / manufactured and services rendered
• Standing Charges means all fixed costs incurred for proper business operations
• Turnover means the amount payable (fewer discounts) to the insured for sale of goods / services rendered in course of business at specified premises
• Indemnity period starts from the day of accident and ends not later than the number of months indicated in the policy during which the business is affected
• Lay off Wages refers to payment to employees during indemnity period for which no work was/ is available in consequence of the accident
Policy Coverage
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 stated 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 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%.
