Machinery Breakdown Insurance
This a specialized policy that protects businesses from financial losses due to the sudden and accidental breakdown of insured machinery or equipment. It is important to note that this isn’t about wear and tear—it’s about unexpected failures that can halt operations and rack up repair or replacement costs.It’s especially valuable in industries where equipment downtime can halt operations and lead to significant losses
Breakdown of what is covered under Machinery Breakdown Cover
Risks Covered
Features
- Accidental Mechanical or electrical breakdowns: Including short circuits, motor burnout, or gear failure
- Faulty design or material defects & damage from operator error
- Breakdowns during operation, rest, cleaning, or maintenance
- Costs of repair or replacement of the damaged machinery
- Optional add-ons: Overtime repair costs, express freight, or dismantling and reassembly.
What’s Not Covered
- Fire, theft, or natural disasters: Covered under Fire or Other property Insurance
- Gradual wear and tear: Like rust, corrosion, or erosion
- Pre-existing faults: Known issues before the policy started
- Negligence or willful damage
- Damage covered under warranties or service contracts
Why Machinery Breakdown Cover Matters
- For industries like manufacturing, printing, construction, or even healthcare, a single machine failure can mean days of downtime and lost revenue. This insurance ensures business continuity by covering:
- Repair or replacement costs
- Loss mitigation expenses
- Peace of mind for business owners and investors