Machinery Breakdown Insurance

Machinery Breakdown Insurance

This policy covers accidental, sudden and unforeseen damage to machinery resulting in breakdown.

It provides cover for plant machinery and mechanical equipment at work, at rest or during maintenance operations.

All types of machinery, plant, mechanical equipment and apparatus may be covered under Machinery insurance

If possible, all the machines of a plant or workshop or of a separate plant section should be included in the insurance in order to ensure that the risk is adequately balanced.

Only those items having a short service life compared to the entire plant are normally excluded from Machinery insurance, such as:

  • All types of interchangeable tools
  • Sieves, engraved cylinders, stamps, dies, ropes, chains, belts
  • Parts made of glass, ceramic or wood, rubber tyres.
  • Operations media of any kind such as fuel, gas refrigerants, catalysts, liquids, lubricants (oil in transformers and circuit breakers is, however, included since it is not only a coolant but also serves as an insulation agent)

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:

  • Faulty design (calculations, plans, drawings and specifications), faults at workshop or in erection, defects in casting and material
  • Faulty operation, lack of skill, negligence, malicious acts
  • Tearing apart on account of centrifugal force.
  • Physical explosion, fuel gas explosion in boilers
  • Short-circuit and other electrical causes
  • Shortage of water in boilers
  • Storm, frost, drifting ice.

Why choose Covenant Insurance Brokers?

Why do you need Machinery Breakdown insurance?

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.


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