Illustrative example
An insured refrigeration unit unexpectedly breaks down. The policy may contribute to covered repair or stock-deterioration costs.
When the repair bill is only part of the loss
Machinery and plant breakdown insurance
A key machine stopping can affect repair costs, stock and production.
Machinery breakdown insurance may cover sudden and accidental mechanical or electrical failure to insured equipment. Stock deterioration, electronic equipment and business interruption extensions may be available, but wear, corrosion and gradual deterioration are commonly restricted.
Preparing the review
What information usually matters?
- Equipment schedule, function, age, make, model and replacement value.
- Maintenance contracts, inspections, spare parts and critical dependencies.
- Pressure equipment, refrigeration, electrical and electronic systems.
- Stock susceptible to temperature change or spoilage.
- Production bottlenecks, repair lead times and interruption values.
Important boundaries
Property damage from fire or storm, routine maintenance, gradual wear, defective parts and interruption can be treated differently under the policy.