Safeguard your equipment from unexpected damages that disrupt your business with machinery breakdown insurance, whether active or idle.
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Machinery breakdown insurance protects industrial and factory machines. This insurance covers the costs associated with unintentional mechanical failures and physical damages. It also addresses the expenses for repairing or replacing damaged machine components. Commonly insured machinery under this policy includes generators, compressors, industrial ovens, printing presses, boilers, and various other mechanical and electrical equipment utilized in industries. Some insurers offer additional coverage options or riders to further protect against potential risks or unforeseen expenses such as price fluctuations, air freight, machinery foundation, and customs duties.
When determining the replacement cost of damaged machinery, a machinery breakdown insurance policy typically examines two situations:
1. Partial Loss: Should there be a partial loss to the machinery, the policy covers the entire cost of the replacement parts. This includes labor charges, air freight fees, customs duties, and expenses related to dismantling and re-erecting the machinery.
2. Total Loss: In this scenario, the insured amount is based on the machinery's actual value prior to the damaging event, subtracting any relevant depreciation.
For an added premium, policyholders can avail of expanded coverage options. These can encompass express freight, customs duty, air freight, and third-party liability, among other provisions.
Machinery breakdown insurance is apt for a vast array of businesses spanning different sectors. Below are some business types that stand to gain from such a policy:
In commercial and industrial realms, machinery is pivotal for operations. A breakdown or malfunction can instigate considerable financial setbacks due to repair expenses, production halts, and even potential operational interruptions. Securing machinery breakdown insurance becomes vital for enterprises that are significantly dependent on machinery and equipment.
When machinery encounters issues, it often triggers operational hindrances and downtime, leading to postponed production, unmet timelines, and compromised efficiency.
In such circumstances, machinery breakdown insurance steps in, offering coverage for indispensable repair or replacement costs. This helps alleviate the monetary strain on the organization. In essence, with machinery breakdown insurance, firms can delegate a segment of the aforementioned risks to the insurance company. This empowers businesses to hone in on their principal activities, freeing them from perpetual apprehension over machinery and equipment mishaps.
This is an article by YouStory written by Palak Agarwal and published on October, 2022
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