Machinery Breakdown Insurance policy broadly indemnifies the insured against the cost of repairing or replacing the insuredindustrial or electronic equipment to its original state as a result of unforeseen internal or external damage. Although your equipment is under warranties and service contracts which do provide some protection, they do not cover many of the common causes of equipment breakdowns such as damages due to operator error nor will they pay for spoilage and damage to surrounding property or extra expenses to restore operations. This policy does cover all these risks for you. Cover is also valid when the machinery is at rest or in the process of dismantling, cleaning, overhauling or during subsequent re-erection at the same premises.
Who can take the policy?
Lessor / Lessee
Anyone with financial interest in the machinery
What do the add-on covers include?
Damage to foundation of machinery
Damage to oil in electrical apparatus
Express freight (excluding air freight), holiday rates, overtime charges
Escalation of cost
Own surrounding property
Third party liability
Additional custom duty i.e. the additional percentage of duty payable for reimport at the time of replacement, over and above the percentage of duty included in the original sum insured
In addition, the following will also be covered