Machinery Breakdown Insurance can respond when insured machinery suffers a covered breakdown.

The scope varies between insurers.

What costs can be covered? #

Depending on the policy, cover can include:

• Repair costs.
• Replacement of damaged machinery.
• Parts.
• Labour.
• Certain temporary hire costs.

The insurer may repair the machinery or contribute toward replacement depending on the circumstances.

What types of breakdown can be insured? #

Examples can include certain:

• Mechanical failures.
• Electrical failures.
• Pressure-related failures.
• Internal equipment breakdowns.

The policy definition of breakdown is important.

Does it cover gradual wear and tear? #

Generally, Machinery Breakdown Insurance is intended for sudden and unforeseen events rather than routine deterioration.

Wear and tear, corrosion and gradual deterioration can be excluded.

What about temporary machinery? #

Some Business Insurance Machinery Breakdown sections can contribute to the cost of hiring temporary replacement machinery while insured equipment is being repaired.

The amount available depends on the wording and limit.

Is maintenance still required? #

Yes.

Insurance does not replace routine servicing and maintenance.

Poor maintenance or known defects can affect cover.