Machinery Breakdown Insurance, is designed to provide cover against unforeseen and sudden physical loss or damage to the machinery.

Whether your business is in the hospitality industry, manufacturing, mining, production or retail, motors and machinery play an integral part of a smooth-running operation. When motors fuse or shut down it can have a crippling effect on your business. That’s why is vital to have your motors covered for breakdown.

Given the regularity of machinery breakdown claims, we generally recommend that policies are taken out on a standalone basis, so that if you have claims then it only affects this one policy. If your breakdown policy is combined with your business pack insurance program, then you are more likely to experience a more significant premium loading on renewal terms as claims on the machinery will impact the premium of the other sections you insure.

How much does it cost to have machinery breakdown insurance?

Premiums can start from as little as $800 a year for low levels of cover and range up to $5,000 for larger businesses. It really depends upon the number of units (motors) you wish to insure and the limit you need the insurer to pay out for claims.

One handy tip to consider when purchasing this cover is to first choose an excess which you are comfortable to pay, say $500 per claim. From here, count all the motors that will cost more than the selected excess to replace and insure those. This way you only nominate the number of machinery items that you need to insure and wont waste money insuring the smaller machinery items that you would never claim on anyway.

What type of machinery does this usually cover?

  • Air conditioning
  • Cool room motors, fridge or freezers
  • Boilers
  • Pressure vessels
  • Pumps

What are the main features of cover available in machinery breakdown policy?

Equipment Breakdown: The costs incurred to repair/replace items following an instance of breakdown.
Deterioration of Stock: Costs incurred as a result of spoilt stock following an instance of breakdown.
Interruption Insurance: Cover provided for loss of profits etc. as a result of a breakdown.
Temporary Hire Costs: The costs to hire temporary equipment to keep the business operational.
Professional Fees: The professional fees associated with proving or quantifying a loss.
Expediting Expenses: Any costs reasonably incurred to make temporary repairs, expedite permanent repairs or replacement.

For more information or to obtain a quotation for machinery breakdown, please contact our office or fill in the quote request and we will find a policy which suits your needs.