Machinery Breakdown Loss of Profit Insurance

The Machinery Breakdown Loss of Profit Insurance protects the loss of gross profit and/or increased cost of working due to a continuing interruption to business caused by a breakdown covered by the Machinery Breakdown insurance. The interruption usually comes in the form of time spent in arranging repairs, awaiting delivery of repaired or replacement parts (sometimes from overseas), starting up the plant and re-activating the business. It is a requirement that the insured have a Machinery breakdown policy in force. In addition, for a loss of profits claim to be admissible, the material damage claim must also have been valid.