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Standalone machinery products will often cover events such as mechanical failure, electrical short circuiting or motor burnout, as well as damage resulting from an accidental event, explosion or collapse.

Machinery policies are designed to suit, or can be tailored to suit, a large range of risks, from small manufacturing risks to large Property Owner portfolios.
Machinery business interruption policies canbe extended to cover failure of supplies. For example, flooding of the local substation or third-party damage to water pipes.
Claims example
A property owner with a large portfolio of plant and machinery insured two steam boilers which were originally designed to be fuelled by standard gas oil. However, following modification to the boilers to burn a different type of oil they both started tripping. This was caused by excessively hot flue gas temperatures and the boilers became badly damaged. The client’s Property Engineering Policy was able to meet not only the cost of repairs but also the hire of replacement boilers whilst the property underwent repair.
These claims examples are for illustrative purposes only.
Unlike a property policy, a machinery policy will cover operator errors. For example, when a machine has been set up incorrectly and damage is then caused when in use.
‘Payments on Account’ extensions are available for business interruption. For example, if there is a loss of rent an interim partial payment can be made before the end of the indemnity period.
Cover can include interruption due to failure of building management systems.
Lease agreements often state that it is the lessor’s responsibility to repair or replace machinery if it is damaged or destroyed while in their care.

“Aren’t these policies designed only for large manufacturers with processing equipment?”

“This is covered under my Property Policy isn’t it?”

“Don’t I get this cover as part of my warranty?”

Any downtime for any business can result in a loss of income and/or additional expenditure, and many firms may start to have serious liquidity problems within a few weeks of essential machinery being unavailable.
Depending on the operable covers available, additional costs to avoid or minimise financial loss, such as overtime or wages for temporary workers, can be paid.
Your client may be meticulous with their inspections and maintenance programmes, but damage does happen and the consequences can be catastrophic.

Further information

All Machinery

All Machinery provides cover on a blanket basis for all plant and machinery at the premises, covering the cost of repair or replacement of this machinery in the event that it suffers a breakdown or is otherwise damaged or lost.

Machinery Business Interruption

Machinery Business Interruption is a flexible policy providing cover for loss of revenue or profit when the business is interrupted as a result of breakdown or damage to plant and machinery during the agreed indemnity period.
This promotional material is intended for insurance broker use only and no-one else should rely upon it.
It must not be made available to anyone other than the intended recipient, either in its original form or any reproduction.