MACHINERY BREAKDOWN / ENGINEERING

A machinery breakdown policy provides cover for loss or damage arising from a sudden and unforeseen breakdown. The coverage can vary between insurers but can include options such as cost to repair or replace, or a blanket limit per claim. It can also include loss/deterioration of stock as a result of the breakdown.

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Some people may be of the misconception that if their machinery is new or under warranty, they wouldn’t need breakdown cover. Unfortunately, warranties would not cover breakdown as a result of a number of events including:

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• Power surges / Power outages / Power brown-outs

• Operator error

• Incorrect installation

• Accidental damage

• Tripping of a fuse

• Thermostat / Microchip / Sensor failure

Nor would they cover any consequential loss or contamination of stock as a result of the breakdown.

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This cover is typically taken out by businesses which have electronic/mechanical machinery, boilers, pressure plants, refrigerators, cool rooms or air-conditioners.