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MLOP insurance indemnifies the actual loss of gross profit sustained as a result of a business interruption caused by an accident covered under Machinery Breakdown insurance.

MLOP indemnifies the insured against:

  • 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.


MLOP follows the fortunes of the corresponding Material Damage Policy hence similar exclusions in Machinery Breakdown Insurance applies to MLOP.
In addition, the following are also excluded:

  • Time excess
  • Loss or damage due to imposition of abnormal conditions resulting from testing, intentional overloading or experiments.
  • Raw materials. Semi-finished or finished products.
  • The Insured not having at his disposal in good time sufficient capital for repairing or replacing destroyed or damaged machinery.

Underwriting Considerations

  • Material damage Proviso i.e. Material damage policy must be in existence.
  • The amount of gross profit for the insured’s business.
  • Length of Indemnity period i.e. the time it take for the business to resume normal operations after a loss incident.
  • Basic rate should follow the Machinery Breakdown Insurance. Multiplies to be determined by the Indemnity period

For assistance, contact our Customer Care teams on 0711-030140 and/or 0711-030105, email customercare@directline.co.ke or visit us at our various branches.

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