Machinery Breakdown Insurance

Policy Overview

Machinery Breakdown insurance provides cover at your premises for Plant and Equipment including Boilers and Pressure vessels against sudden and unforeseen accidental damage resulting from mechanical failure whilst the equipment is in operational or at rest. The cover also extends to include mechanical failure whilst being dismantled, relocated, reassembled, cleaned or under inspection.

Following a mechanical failure, insurers will provide an additional limit for expediting expenses to be used for the possibility of temporary repairs and/or the hire of temporary equipment to maintain continuity of the manufacturing process including express freight and additional labour costs.

In general, machinery breakdown provides for loss resulting from mechanical failure not triggered by an event that would otherwise be insured under a property policy. E.g. lightening strike, storm damage (water and wind), fire etc. As such this cover compliments your property insurance policy by providing the additional peace of mind knowing that your property risk mitigation programme has been comprehensively addressed from all facets of loss.

Major Exclusions

• Loading and unloading on delivery,
• Breakdown covered under a manufactures warranty,
• Testing and commissioning and intentional overload,
• Failure resulting from unsafe operation of the equipment,
• Consumables and Wear and Tear items that would be replaceable during the servicing process such as Filters, Belts, hoses, brushers, electrical safety equipment such as fuses and other protection equipment, bearings and seals,
• Loss resulting from rust, oxidisation, corrosion and cavitation.
• Maintenance works, alterations, improvements, adjustments / recalibration.

Extensions

• Electronic Equipment and all other equipment connected to and operating from such electronic equipment and data carrying media,
• Business Interruption resulting in a reduction of turnover following a mechanical failure.
• Deterioration of Stock following a breakdown on the premises where there is a rise or fall in the temperature resulting in the stock being compromised.

The information provided on this page that may have been implied is General Advice only and does not take into consideration your specific needs, risk appetite or financial requirements. Please contact our office to discuss and review your needs and the appropriate financial product best suited to meet your requirements . Before purchasing any financial product, you should always read the Product Disclosure Statement to ensure the product is suitable for your needs.