Machinery Breakdown Insurance

Key Coverage Areas

• Mechanical & Electrical Failures – Covers breakdowns due to short circuits, excess voltage, faulty materials, faulty design, and abnormal operating conditions.
• Accidental Damage – Covers losses due to falling, impact, collision, or operator negligence.
• Operational Coverage – Protects machinery whether in operation, at rest, or during dismantling, overhaul, or re-erection at the insured premises.
• Third-Party Liability – Covers bodily injury or property damage caused to third parties (optional).
• Business Interruption (Optional Add-on) – Compensates for loss of income due to machinery breakdown.
• Other Structures & Equipment – Covers machinery foundations, masonry, brickwork, and oil in transformers.

Important Considerations

• Premises-Specific Coverage – The policy applies only within the insured location.
• Depreciation Consideration – Depreciation applies when calculating replacement costs.
• Best Paired with Standard Fire & Special Perils Policy – Ensures comprehensive coverage.

Why is it Important?

For industries relying on machinery, an unexpected breakdown can disrupt operations, cause financial losses, and impact production. Machinery Breakdown Insurance helps businesses recover quickly by covering repair and replacement costs.