Loss of Profit Following Machinery Breakdown Takaful


When a key item of machinery in a factory breaks down, the owner is faced not only with an expensive repair but also a continuing interruption of his business. With increasingly sophisticated machinery and longer delivery periods from makers, any such interruption is a cause of great concern to the owners, especially when the cash flow dries up, standing charges are not met, wages remain to be paid and creditors and shareholders are looking for a profit. To overcome all these situations, Loss of profit policy provides protection in respect of loss of gross profit to the business following an accident to the machinery. This loss is measured by comparison of the turnover with the comparable position in the previous twelve months, after allowing for trends in the business and other relevant factors. Increased cost of working incurred to save a loss of gross profit is also covered.