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Engineering

If your business owns, operates or depends upon some type of equipment or machinery to generate revenue, you need machinery breakdown insurance, should they fail due to a sudden and unforeseen event, which is insured. Equally as important, you need reduction in Gross Profit cover following Machinery Breakdown,should one of your key pieces of machinery failed suddenly (due to an insured event). A key piece of machinery which is not insured for breakdown and reduction Gross Profit following Machinery Breakdown, could have catastrophic financial consequences for your business.

Specialty Engineering

Tolerance For Failure

If your business owns, operates or depends upon some type of equipment or machinery to generate revenue, you need machinery breakdown insurance, should it fail due to a sudden and unforeseen event which is insured.

Equally as important, you need reduction in Gross Profit cover following Machinery Breakdown, should one of your key pieces of machinery fail suddenly due to an insured event. A key piece of machinery which is not insured for breakdown and reduction in Gross Profit following Machinery Breakdown could have catastrophic financial consequences for your business.

Machinery Breakdown Insurance

Do you need machinery breakdown insurance?

If your business or organization owns, operates or depends upon some type of equipment to generate revenue, you need machinery breakdown insurance.

Do you use electricity?

Do you heat, cool or refrigerate your premises?

Do you have communication networks?

Do you manufacture or process goods?

Do you use equipment to sell, deliver service or help you keep track of sales?

Do you use hot water?

Some Examples

The broadcast, publishing and production industries are just one non traditional example of industries with a need to insure against loss arising from mechanical breakdown electrical currents, off premises power failure arcing and electrical disturbance. We normally think of this type of coverage when it comes to insuring a computer. But why would other critical high value equipment such as broadcast antennas or towers, camera packages, edit suites, desktop publishing and printing equipment not share these same coverage issues? In fact, with computer technology so intertwined, it is increasingly difficult to discern where the "computer" stops and today's state of the art production, telecommunications and publishing equipment takes over.

Machinery breakdown insurance covers many types of equipment. It protects:

  • Electrical systems
  • Air conditioning and refrigeration
  • Mechanical equipment
  • Modern office and production related equipment
  • Heating systems such as boilers

General Information Only

Chadwicks provides general information about insurance. The cover suitable for you depends on your contractual responsibilities and specific risks and is determined by the policy wording, schedule and endorsements, including all relevant terms, conditions, exclusions and limits. Please review these documents with your broker or insurer before making any insurance decisions.

Warranties and Service Contracts

Does a warranty cover machinery breakdown?

Warranties and service contracts are important, but they do not cover many of the common causes of machinery breakdowns.

Warranties & Maintenance Contracts

Maintenance contracts cover routine service such as cleaning or adjustment. But they do not pay for damage due to operator error, the cause of over 35% of machinery breakdowns.

Business Interruption & Resultant Loss

Warranties and maintenance contracts also do not pay for business interruption or income loss resulting from breakdown. Nor do they pay for spoilage, damage to surrounding property or extra expenses to restore operations.

Machinery Breakdown insurance does. Machinery Breakdown insurance can cover all these risks.

Machinery Breakdown Cover

What does machinery breakdown insurance cover?

You should consider the most comprehensive machinery breakdown insurance South Africa affords if you own machinery or a plant that has the propensity to fail. The failure may be relatively small or conversely can verge on the disastrous. For example, a bearing may fail on a compressor, which is of little consequence but, as often happens, the bearing could cause further resultant damage to the crankshaft, conrods, pistons etc. and then the failure can become very serious indeed.

The Working Risk

Firstly, physical loss or damage must arise. Secondly, there must be an incident i.e. the loss or damage must be sudden and unforeseen (not maintenance related), and thirdly the loss or damage must be of a mechanical or electrical nature.

The Nonworking Risk

Again the above three criteria apply but this time the loss or damage can arise whilst the machinery or plant is at rest, or whilst being reassembled all within your premises.

Examples of Insured Failure

  • Collapse of boilers
  • Breakage of shafts, gearing, transformers
  • Open circuits or flashover
  • Puncture or breakdown of insulation
  • Electrical surge or overpressure
  • Internal overheating
  • Damage caused by nonoperation of protective devices
  • Excessive stresses or fatigue
  • Defective material or design or incorrect assembly
  • Inadequate lubrication
  • Faulty balance, alignment or adjustment
  • Impact

Machinery Breakdown Insurance

Do you need machinery breakdown insurance?

If your business or organization owns, operates or depends upon some type of equipment to generate revenue, you need machinery breakdown insurance.

Do you use electricity?

Do you heat, cool or refrigerate your premises?

Do you have communication networks?

Do you manufacture or process goods?

Do you use equipment to sell, deliver service or help you keep track of sales?

Do you use hot water?

Some Examples

The broadcast, publishing and production industries are just one non traditional example of industries with a need to insure against loss arising from mechanical breakdown electrical currents, off premises power failure arcing and electrical disturbance. We normally think of this type of coverage when it comes to insuring a computer. But why would other critical high value equipment such as broadcast antennas or towers, camera packages, edit suites, desktop publishing and printing equipment not share these same coverage issues? In fact, with computer technology so intertwined, it is increasingly difficult to discern where the "computer" stops and today's state of the art production, telecommunications and publishing equipment takes over.

Machinery breakdown insurance covers many types of equipment. It protects:

  • Electrical systems
  • Air conditioning and refrigeration
  • Mechanical equipment
  • Modern office and production related equipment
  • Heating systems such as boilers

General Information Only

Chadwicks provides general information about insurance. The cover suitable for you depends on your contractual responsibilities and specific risks and is determined by the policy wording, schedule and endorsements, including all relevant terms, conditions, exclusions and limits. Please review these documents with your broker or insurer before making any insurance decisions.