6 April, 2016
Top 10 Reasons to Buy Machinery Insurance
Machinery and equipment are vital parts of any businesses infrastructure. Protecting it against unexpected breakdown or loss of equipment as well as the option to cover the financial implications when things go wrong is an essential cover for your business.
Here are the Top 10 reasons to buy Machinery Insurance by Allianz
01: Property policy will typically only provide cover for perils such as fire, flood and theft
Machinery insurance will cover internal causes, such as mechanical failure, electrical short circuiting or a motor burnout, as well as damage resulting from an accidental event, explosion or collapse.
02: Machinery insurance policies cover a lot more than manufacturing plant and boilers
A wide range of equipment can be insured, from lifts to refrigeration equipment and cranes to transformers.
03: Cover is suited to businesses of all sizes from a wide variety of sectors.
Generally, machinery insurance policies are designed to suit a large range of risks, from small textile manufacturers to large shopping centres.
04: People make mistakes
A Machinery insurance policy will cover operator errors, for example, when a machine has been set up incorrectly and damages itself while in use.
05: Machinery in transit or away for repair will be protected.
Equipment can be removed from the premises for repair or maintenance, so breakdowns and accidents can occur in locations excluded by traditional property policies.
06: Warranty covers are limited
Warranties usually apply for a limited time period and exclude events such as operator error which are covered by machinery insurance policies.
07: Machinery insurance can help businesses meet leasing companies’ requirements.
Lease agreements often state that it is the lessor’s responsibility to repair or replace machinery if it is damaged or destroyed while in their care.
08: Surrounding property cover is included
A property policy will not provide reimbursement for damage to, or destruction of, property situated near to pressure plant that explodes as a result of sudden and unforeseen damage.
09: Your financial stability will be safeguarded
Machinery insurance providers often offer machinery business interruption policies which provide protection against financial loss due to downtime relating to insured equipment.
10: Maintenance is no guarantee
Your client may be meticulous with their inspections and maintenance programmes, but damage does happen and the consequences can be catastrophic.