Engineering Plant Insurance
Engineering plant insurance, commonly known as “Machinery Breakdown Insurance”, protects owners or operators of fixed machinery, boilers and pressure vessels, by covering unbudgeted repair costs when breakdown or accidental damage occurs.
- Automatic ninety days coverage for acquired plant similar to the plant already insured
- Additional repair costs in relation to temporary repairs, overtime and express freight and hiring of temporary plant up to 50% of the total sum insured or $40,000, whichever the lesser
- Additional cost of replacing insulating oil or refrigerant following Insured Damage
- No depreciation on damaged Plant repairs or replacement
- No FSL statutory charges
- In relation to deterioration of stock
- No co-insurance
- Payment for disposal costs reasonably incurred
- Payment of reasonable loss minimisation costs
- Automatic 30% sum insured seasonal increase.
How to apply
The policy can be further extended to cover:
- Explosion and collapse only (boilers and/or pressure vessels)
- Third party legal liability (boilers and/or pressure vessels)
- Deterioration of stock in cold storage
- Increase cost of working (for production plant).
There are no exclusions in relation to:
- Damage due to vermin
- Damage caused by voltage peaks or current surge
- Damage caused by operator error and/or misuse
- Overtime and express freight in excess of the amount allowed under any maintenance contract
- Damage caused by contamination, pollution, resultant damage from corrosion, variation of temperature, evaporation, inherent vice, latent defect, smoke, error in plan design or specification, faulty workmanship.
Unlike property insurance, engineering cover is dependent on the operation and maintenance of the plant, rather than industry type. However examples of typical engineering risks are:
- Office buildings
- Manufacturing industry
- Metal workers
- Plastic products
- Saw mills
- Wood working industry
- Engineering shops
- Food & drink manufacturing
- Cold stores
- Commercial laundries
- Automotive repair
- Educational establishments.
A desirable risk would be where machines are reliable and well maintained. Undesirable risks are those where machines are subjected to arduous working conditions (rapid wear and tear) and are poorly maintained.