Machinery breakdown insurance covers damage caused by sudden and unforeseen events to operating machinery such as production lines, generators, compressors, turbines, presses and machine tools. Defects in casting and material, faulty design and erection, operator error, excessive pressure, centrifugal force and electrical faults are common risks at industrial sites that a property policy typically does not cover.
An unexpected machinery stoppage can lead to lost production on top of the repair cost. For this reason, a machinery breakdown policy can be considered together with machinery loss of profit cover where needed. Preparing a complete machinery schedule at new replacement value, keeping maintenance records up to date and setting deductibles correctly all make the policy more effective.
Who is it for?
- Production and manufacturing facilities
- Power generation and distribution operators
- Continuous process industries such as food, chemicals and textiles
- Businesses using generators, refrigeration and compressor systems
Scope of cover
- Damage from defects in casting, material, design and erection
- Operator error, negligence and malicious acts
- Short circuit, overvoltage and other electrical faults
- Mechanical causes such as excessive pressure, centrifugal force and lack of lubrication
- Dismantling, transport and re-erection costs during repair
- Machinery loss of profit extension option
Scope of cover, limits and deductibles are determined by the insurer’s general and special conditions; the final scope is set out in the policy.
The Proxima Brokers approach
We review the machinery at your site, its age, maintenance regime and the equipment critical to production to build your risk profile. We help prepare a machinery schedule at new replacement value and compare deductible and cover options with several insurers. We review policy terms and exclusions on your behalf and coordinate with technical adjusters and service providers when a claim arises.