Many businesses are heavily dependent on their machinery and equipment that is used to manufacture products and goods. Factories and production lines normally use hi-tech precision machinery and are sometimes exposed to a major breakdown which could ultimately affect the entire operations and bring the business to a complete stand-still.

I have Property Insurance so I’m good – no thank you!

Don’t always assume that your commercial or corporate policy automatically covers this class of risk. It may only provide limited cover for fire and allied perils but not necessarily the Machinery Breakdown and Business Interruption (loss of Gross Profit) following the breakdown. This potentially uninsured exposure usually only comes to light after a Machinery Breakdown incident has occurred. Before this happens, we recommend you consult with Financial Services Provider to obtain sound advice on insurance products that are available to protect you against these types of loss or damage.

What does Machinery Breakdown cover?

Machinery Breakdown Insurance is designed to cover all types of fixed plant and machinery whilst working, at rest or whilst being dismantled moved or re-erected for the purpose of cleaning, inspection, repair or installation in another position within the insured premises.

It protects the insured and business against sudden and unforeseen physical loss or damage to the insured machinery arising out of electrical or mechanical breakdown including accidental damage within the premises.

What are the main causes of Machinery Breakdown and is it covered by this policy?

The main causes of machinery breakdown usually arise from human error (negligence), power surges or electrical shorting, accidental damage or the entry of foreign objects.

Which causes of Machinery Breakdown is NOT covered by this policy?

Your Financial Services Provider will discuss with you exactly what causes are not covered by your Machinery Breakdown Insurance as this is not an “all-risks” policy. The insured is responsible for regular service and maintenance as prescribed by the supplier, agent or manufacturer. Here are some causes that are not covered by your Machinery Breakdown Insurance: overloading, molten metal breakout, overriding of safety features, breakdown as a result alterations or additions and wear and tear. Other exclusions are applicable.

For more information regarding Consort’s Machinery Breakdown and Business Interruption Insurance and how your business can benefit from this cover, please contact your Financial Services Provider today.

Consort Technical Underwriters prides itself on maintaining the highest standards of reliability, honesty and integrity and thereby ensuring that we can provide a product and service that is of the utmost quality.