Machinery Breakdown

If the continuity and turnover of your business is contingent on machinery and equipment, a damaged part or breakdown could affect your capacity to operate. Machinery breakdown could have a significant and detrimental impact on your bottom line.

A Machinery Breakdown Insurance policy can protect you from financial loss when things don’t go to plan.

Machinery Breakdown insurance can assist your business in a number of ways:

Repair costs covering the breakdown of machinery
Consequential losses as a result of the breakdown – e.g. replacement for loss and spoilage of stock, or loss of profits which could occur while waiting for the parts to repair your machinery.

Types of machinery this policy can cover are:

Air conditioning
Cool rooms, fridge or freezer
Printing equipment
Boilers
Pressure vessels

We can arrange cover specifically for the machinery integral to your business. We strive to provide you with a solution that gives you peace of mind and greater confidence when making decisions that affects the future of your business.

Please Note: Below are some of the more common insurance policy features, however, the list is not exhaustive and some features may not be offered by certain insurers. Please refer to the insurer specific policy wording for inclusions, exclusions, terms and conditions.

Covered Features

Equipment Breakdown

The costs incurred to repair/replace items following an instance of breakdown.

Deterioration of Stock

Costs incurred as a result of spoilt stock following an instance of breakdown.

Interruption Insurance

Cover provided for loss of profits etc. as a result of a breakdown.

Temporary Hire Costs

The costs to hire temporary equipment to keep the business operational.

Professional Fees

The professional fees associated with proving or quantifying a loss.

Expediting Expenses

Any costs reasonably incurred to make temporary repairs, expedite permanent repairs or replacement.

FAQ's:

What exactly comprises a machinery breakdown?

Breakdown is usually defined as being sudden and accidental damage to an item of equipment, which leads to the equipment or any part of the equipment requiring repair or replacement.

The compressor on my air conditioning unit has failed and needs to be replaced, will my policy cover this?

Yes the policy will cover the repair costs of the air conditioning unit.

My refrigerator broke down over night and a large quantity of stock has spoiled will my insurance cover the loss?

Yes, as long as you have a sub-limit in respect to deterioration of stock the policy will respond to cover the costs.

My air conditioner has caused a fire in my property will my policy respond?

No, this policy is in respect of breakdown only and the damage caused by the fire, including damage to the A/C unit, would covered under your property policy.

I have suffered a reduction in my turnover and subsequent profit due to my packing equipment breaking down, will the policy respond?

Yes, as long as your policy has been extended to include business interruption.

One of the valves attached to one of my machines has started to leak, is this covered?

No, leaking of valves or joints is usually excluded under the policy, if not directly excluded insurers may look to exclude the claim on the basis of gradual deterioration or wear and tear.