WHAT IT COVERS
Loss of Profits following Machinery Breakdown Insurance provides cover for the actual loss of profits sustained as a result of a business interruption caused by an accident indemnifiable under Machinery Breakdown Insurance. Basically speaking, a loss due to an interruption or interference of business operations is made up of the following factors.
– The reduction in turnover resulting from decreased production or other impairment of business operations caused by an accident.
– The increase in cost of working, i.e. the additional expenditure necessarily and reasonable incurred for avoiding or diminishing the reduction in turnover.