Machinery Breakdown Insurance covers loss or damage to fixed and/or non-mobile plant  and machinery due to any unforeseen and sudden physical loss or damage  to machinery insured resulting from causes such as defects in casting and material, faulty design, faults at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boilers, physical explosion, tearing apart on account of centrifugal force, short circuit, or from other causes not specifically excluded.

It is a condition that Sum Insured should represent the New Replacement Values and that there shall be satisfactory Maintenance Program throughout the period of Insurance.

Loss of Profit due to Machinery Breakdown Insurance:

Machinery Loss of Profits insurance provides cover for the actual loss of gross profits (i.e. net profit and standing charges) and/or increased cost of working sustained as a result of a business interruption caused by an accident indemnifable under Machinery Insurance.

It is important to select the Indemnity Period (for 3 / 6 / 12 months or more) during which the business can be restored to its pre-loss position following a loss.

For Business Interruption cover to operate, it is compulsory that there be in place a Machinery Breakdown Insurance Policy.