Understanding the Coverage of Machinery Breakdown Insurance

If your business depends on equipment and machinery and it’s damaged or breaks down, your business could suffer financially. Machinery breakdown insurance provides coverage against unforeseen and sudden loss or damages following a breakdown. This insurance policy can also be extended to include losses that result from an interruption to your business. Learn how Atlantic Insurance machinery breakdown coverage options can prepare your business for unexpected financial damages.

Who needs to take out machinery breakdown insurance?

Any business with complex mechanical, electrical, electronic, or pressure equipment should consider having machinery breakdown insurance to cover the unexpected costs associated with a breakdown.

What does machinery breakdown insurance cover?

For over 40 years, Atlantic Insurance has provided machinery breakdown solutions for our clients. The types of businesses we provide insurance coverage for have:

Complex processing and heating and cooling equipment.
Air conditioning units.
Conveyor belts, including canning and bottling lines.
Large scale printers.
Food processing equipment and associated cool storage.
Coolers and boilers.
Pressure vessels.

If you have a business in the food or beverage industry, our Client Managers can help you add deterioration of stock insurance coverage. This can cover the cost of stock lost or damaged during a machinery breakdown.

What are the coverage inclusions under machinery breakdown insurance?

Atlantic Client Managers take the time to understand your business requirements and risks. Other types of business insurance that can be appropriate as an extension include the following:

Additional equipment upgrades and costs related to sustainability and going green’’.
Additional increased costs of working when the machinery has broken down.
Business interruption and the resulting loss of income.
Contractual fines and penalties may occur if you can’t work because of the machinery breakdown.
Electronic data restoration resulting from the breakdown.
Expediting expenses and loss of rent.
Professional fees and temporary hire costs.

Do you have questions about machinery breakdown insurance? Contact us here.

What other business insurance policies should I consider?

To ensure your business is fully covered, our Client Managers can help you get the best value business insurance policies. These typically include:

Property insurance

This business insurance covers business property, including buildings, stock, customer goods, and other content, against water, storm damage, or fire.

Business interruption insurance

If your business needs to close due to damage, this insurance covers you for loss of profits and income.

Public liability insurance

This insurance covers amounts you may be liable to pay for property damage and personal injury to third parties in connection with your business.

Cyber insurance

We can help protect your business against social engineered theft, extortion, identity theft, privacy errors, and hacking.

What is typically not included with machinery breakdown insurance?

The following are generally not included as part of machinery breakdown insurance:

Earthquakes.
Failure to undertake maintenance.
Fire, smoke, soot, or a chemical explosion.
Intentional or malicious damage to the machinery.
Landslip or subsidence.
Lightning, storms, wind, water or floods. This can include water escaping, discharging or leaking from any source external to the machinery insured.
The impact of land-borne vehicles, aircraft or watercraft on the machinery.
The replacement of expendable parts.
Theft or burglary —separate tool theft insurance can be issued.
Wear, tear or gradual deterioration of the machinery.

How does Atlantic Insurance assist with machinery breakdown insurance claims?

If your business experiences machinery breakdown, your Atlantic Insurance Client Manager will be on hand to help you make a claim. Unlike other insurance companies that rely on call centre staff, our personalised approach to our valued customers ensures your claim is actioned swiftly.

When assessing machinery breakdown claims, our insurers will rely on reports provided by a repairer, plus those appointed directly by themselves. Our Client Managers advocate for you during the machinery breakdown claims process and work hard to reduce the downtime your business experiences. Contact us today for a no-obligation quote.

Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. You should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.

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