Machinery Breakdown Insurance

• Machinery breakdown insurance provides financial protection against unexpected breakdowns or damage to equipment, which can be costly to repair or replace.
• This insurance can help businesses avoid significant financial losses and potential bankruptcy.
• Machinery breakdown insurance can cover the costs of repairs or replacements, helping businesses get their equipment up and running again quickly and minimizing the amount of downtime.
• Having machinery breakdown insurance as part of a broader risk management strategy can help businesses reduce the risk of costly breakdowns and associated financial losses.
• Insurance providers may offer additional risk management services, such as regular equipment inspections and maintenance recommendations, to help businesses mitigate the risk of breakdowns.
• Machinery breakdown insurance can be customized to meet the specific needs of a business, with coverage options for different types of equipment and levels of protection.
• Knowing that machinery breakdown insurance is in place can provide peace of mind to business owners and employees, helping them focus on their daily operations without worrying about the potential financial impact of equipment breakdowns

• Fire, lightning, chemical explosions, burglary and theft, i.e. perils covered or coverable under other policies (loss or damage indirectly caused by lightning being included in the cover)
• Inundation, flood, earthquake, subsidence, landslide, the impact of land borne, waterborne or airborne craft.
• Wear and tear as a consequence of regular use or operations as well as cavitation, erosion, corrosion (e.g. rust) or boiler scale (this exclusion relates only to the parts immediately affected.)
• War or warlike operations, civil commotion of any kind as well as acts on the part of strikes and locked-out persons
• Willful acts or gross negligence on the part of the Insured or of his representatives.
• Faults or defects existing at the time of commencement of the insurance which ought to have been or were known to the Insured.
• Faults or defects for which the supplier is responsible either by law or under contract (losses covered by warranty)
• Nuclear reaction, nuclear radiation or radioactive contamination

The sum insured should always be the replacement value of the insured machinery (value of the new item plus customs duties plus transportation and installation charges).

The premium rates charges are calculated separately for each type of machine on the basis of statistics kept over a period of many years.

In the event of damage which may be repaired, the Insurers will indemnify the Insured in respect of the expenses to be incurred for restoring the damaged machinery to its working condition prior to the damage. These expenses mainly include the costs for repair work and the necessary spares, disassembly and reassembly costs, ordinary freight charges, customs duties, expenses for the employment of specialists and other charges contained in the sum insured.