Machinery Breakdown

A policy for insuring machines against breakdown, being traditionally an “all risks” policy, provides compensation for damage as a result of unforeseen accidents and breakdown due to any causes including defects, operator error, overload, overheating, vibration, jamming, hydraulic impact, electrical current effect, steam boiler explosions, etc.

Machinery breakdown insurance can cover various equipment including steam boilers, various turbines, pumps, compressor installations, electric motors and generators, transformers, production lines and other equipment which produces, transforms or transfers mechanical or electric energy.

Machinery breakdown insurance is not as common as fire and construction coverage and is usually used to supplement fire policy coverage.

Underwriting for such policies essentially differs from fire risk assessment and requires a particularly careful consideration of the special features of technological processes and equipment operation.

Underwriting capacity  
 

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