Insurance Issues - Processing 3816762268780510832-blid-4314667978072647077

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As with mechanical breakdown it is not the purpose of an ARPI policy to cover a manufacturer for loss occasioned by its own actions in processing raw materials to a finished state. The policy does not cover damage caused on the production line. Therefore, it is usual to find in ARPI policies an exclusion stating that "damage resulting from stock or materials undergoing any process of production, packing treatment, commissioning test or testing is not covered". It is not uncommon for the exclusion again to include a proviso specifying that a policy will cover resulting damage.

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