Machinery Breakdown Insurance
A machinery breakdown insurance policy covers unforeseen and sudden loss or damage to the insured property due to causes such as:
- Faulty Design, Workshop or Erection Faults, Faulty Casting and Faulty Material
- Lack of Skill, Carelessness, Malicious Damage, Faulty Operation
- Short-Circuiting and Other Electrical Causes
- Shortage of Water in Boilers
- Tearing Apart on Account of Centrifugal Force
- Physical Explosion
It provides indemnity for any loss or damage arising out of the above causes whether the insured property is at work, at rest, or being dismantled for the purpose of cleaning, overhauling, or repairs at the insured’s premises and in the course of subsequent re-erection.
Types of Machinery Breakdown Insurance:
- Equipment Floater Insurance– provides coverage for heavy machines and movable equipment such as tractors, bulldozers, cranes, road rollers and the like against all risks of direct physical loss or damage from any external cause.
- Electronic Equipment Insurance– provides accident insurance coverage on an “all risks” basis for electronic equipment such as:
- Electronic data processing equipment (EDP)
- Electrical and radiation equipment for medical use such as electrocardiograph, x-ray and other radiation equipment in hospitals and medical laboratories, etc.
- Communication facilities such as telephone exchanges, radio, television, and communication apparatus, etc.
- Miscellaneous equipment such as used in film and television studios, automatic addressing, booking and invoicing machines, etc.