The cover relates to possible mechanical failure of machinery, production lines, etc., operating within the premises of a business. The restoration of such damage means time and money for the entrepreneur. Through a mechanical breakdown insurance policy, you are given the opportunity to be able to be compensated for any unforeseen & sudden event of physical/property loss or damage to the insured machinery that creates the need for repair or replacement and is not excluded from your policy.
A Mechanical Damage policy covers loss or damage primarily due to the following causes:
- Defective design, poor workmanship, assembly errors
- mishandling, carelessness, malicious actions
- Short-circuit and other causes of an electrical nature
- Water shortage in boilers
- Physical explosion
- Storm, frost
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Frequently Asked Questions
Find answers to key questions about the plan and get information before you choose the coverage that’s right for you.
Fire insurance covers external risks (fire, flood). Mechanical breakdown insurance covers damage caused by internal causes: poor workmanship, material defects, incorrect operation, sudden failure.
Yes, breakdown insurance works independently of the manufacturer’s warranty. In fact, it is more critical for older equipment that is no longer covered by warranty.
With the addition of ‘Machinery Breakdown Business Interruption’ (MB BI) yes. This coverage is often more critical than the equipment damage itself – especially in industrial facilities.
It depends. Some policies exclude damage during scheduled maintenance. Test operation after repair is usually covered.