Why take Machinery Breakdown Insurance?
Machinery Breakdown Insurance covers sudden and unforeseen damages arising from mechanical and electrical breakdowns and accidental external means to insured’s plant and machinery. This insurance policy is extremely useful to protect manufacturing industry against heavy expenses necessitated in repairing of the machinery under breakdown, thus ensuring business continuity.Who can take the Insurance?
-The owner(s) of the machinery-Lessor /Lessee of the machinery
-Jointly where financial interest can be established for more than one party such as bankers financiers
What does Machinery Breakdown Insurance cover?
This policy covers the unforeseen and sudden accidental physical damage to insured machinery, plant and equipment while at work/rest and when being dismantled or removed or re-erected, within the same premises The policy covers also, loss or damage due to faulty operation, adjustment, casting, vibration, entry of foreign objects, loosening of parts, self-heating, and centrifugal forceWhat does Machinery Breakdown Insurance not cover?
The policy excludes loss or damage as a result of the following perils/causes- 1. Fire and allied perils2. War and Nuclear Perils
3. Overload experiments / tests / abnormal operating conditions
4. Gradually developing flaws, defects, cracks or partial fractures in any part not necessitating immediate stoppage, although at some future time repair or renewal of the parts affected may be necessary
5. Deterioration of or wearing away or wearing out any part of any machine caused by or naturally resulting from normal use or exposure
6. Willful act / negligence of the Insured
7. Contractual liabilities
8. Pre-existing defects
9. Consequential losses or any kind
What extensions are afforded under Machinery Breakdown Insurance?
1. Express freight2. Holiday and overtime rates of wages
3. Air freight
4. Owners surrounding property
5. Third party liability