Sudden and unforeseen damage to machinery whilst working, at rest or..
Machinery breakdown insurance is a policy that covers unforeseen damages or losses caused by sudden breakdowns of machinery and equipment used in businesses. It can include repairing or replacing damaged machinery, as well as covering the cost of lost production or income resulting from the breakdown.
This insurance is particularly essential for businesses relying heavily on their equipment and machinery for generating income. It is a specialized type of insurance policy designed to cover the risks associated with machinery breakdowns.
Here are some of the things that machinery breakdown insurance typically covers:
By its very nature, Machinery insurance is all risks insurance for machinery, supplementing the coverage afforded by Fire insurance. Thus it covers unforeseen and sudden physical loss of or damage to the insured’s items, necessitating their repair or replacement. Loss or damage covered under Machinery insurance is mainly due to one of the following causes:
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.