Specialised Cover

Plant & Machinery Insurance

Machinery breakdown and all-risks insurance for industrial plant, production line equipment and engineering machinery. Covers sudden and unforeseen mechanical or electrical failure, accidental external damage and the consequential loss of production during the repair period, placed at reinstatement values to eliminate depreciation disputes.

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Coverage at a Glance

Machinery Breakdown

Sudden and unforeseen mechanical or electrical failure

Accidental External Damage

Fire, flood, impact and operator negligence

Loss of Profits

Revenue loss during machinery downtime

Expediting Expenses

Emergency overtime and express freight for fast repair

Breakdown & All-Risk Cover

BI Extension Available

Reinstatement Value Basis

IRDAI Compliant

Coverage

What Your Policy Covers

A structured placement designed to close every material gap in your risk exposure, not a standard policy sold off the shelf.

Machinery Breakdown

Covers the cost of repairing or replacing plant and machinery following sudden and unforeseen physical breakdown due to mechanical defect, electrical fault, centrifugal force, short circuit or operator negligence.

Accidental External Damage

Covers damage to machinery caused by external factors including fire, explosion, flood, impact from falling objects, vehicle collision and malicious damage, perils that may also be covered under a separate fire policy.

Machinery Loss of Profits

An optional extension covering loss of gross profit during the period your production is interrupted as a direct result of an insured machinery breakdown event, for the agreed indemnity period.

Deterioration of Stocks

Covers deterioration of perishable goods in refrigerated storage or cold chain equipment following a breakdown of the refrigeration or cold storage machinery.

Expediting Expenses

Covers additional costs, emergency overtime, express airfreight and special transport, incurred specifically to restore the machinery to working condition faster than would otherwise be possible.

Third-Party Liability

Covers legal liability for bodily injury or property damage caused to third parties as a direct result of the breakdown or malfunction of your machinery.

Industrial Risk Specialists

Our Approach

A Single Breakdown Can Cost Far More Than the Repair

The direct cost of repairing a failed machine is rarely the largest financial consequence. Lost production, delayed customer orders, perishable stock losses and contractual penalty exposure typically dwarf the repair bill. We structure machinery insurance to cover the full financial impact, not just the workshop invoice.

We review your machinery schedule, condition, maintenance records and production interdependencies before approaching engineering insurers, risk quality directly determines the terms available.

We negotiate reinstatement value cover for critical plant items, eliminating depreciation deductions at claims time and ensuring you receive the actual cost of repair or replacement.

We size the Business Interruption sum insured and indemnity period to reflect your actual revenue output and realistic repair timelines, most machinery BI programmes are significantly under-sized.

Who Needs This

Businesses That Carry This Risk

If your operations create the exposures described below, this cover belongs in your insurance programme.

Manufacturing Plants

Factories and production lines where machinery breakdown causes immediate production stoppage and cascading revenue loss.

Food & Beverage Processing

Processors with refrigeration, packaging and processing equipment where breakdown also triggers stock deterioration and supply chain disruption.

Textile & Garment Industry

Spinning, weaving and finishing machinery in textile mills where prolonged downtime affects delivery schedules and export commitments.

Printing & Publishing

High-value offset and digital printing presses where breakdown has both repair cost and order fulfilment consequences.

Engineering Workshops

CNC machining centres, lathes and press tools in precision engineering that require all-risk cover for accidental and breakdown damage.

Utilities & Infrastructure

Power generation equipment, pumping stations and process plant in utilities and infrastructure where breakdown has operational and regulatory consequences.

How We Work

From Brief to Bound Cover

Three steps from your first conversation to a policy that is correctly structured and competitively priced.

Machinery Risk Assessment

We conduct a site visit to review your equipment schedule, condition, maintenance programme and production interdependency before preparing a risk submission for the relevant insurers.

Policy Placement & Valuation

We work with engineering insurers to obtain machinery breakdown and all-risk quotations on a reinstatement value basis, with agreed values for critical items to remove depreciation disputes.

Claims & Engineering Support

On a breakdown, we co-ordinate the insurer's engineering surveyor, challenge undervalued repair estimates and manage the loss of profits assessment through to final settlement.

Key Benefits

Why Clients Place This Cover Through Us

Reinstatement Value Cover

We negotiate new-for-old reinstatement cover for critical machines, eliminating the age-related depreciation deductions that reduce standard machinery claims materially.

Business Interruption Sizing

We model the revenue impact of your worst-case breakdown scenario to set BI cover correctly, the most commonly under-sized section of any machinery insurance programme.

Engineering Claims Expertise

Our claims team includes engineering specialists who can challenge surveyors' repair cost assessments and ensure that the full, fair cost of restoration is recovered.

Maintenance Integration

We incorporate your maintenance programme into the policy structure, documenting compliance with insurer conditions and preventing claim repudiations based on alleged maintenance failures.

FAQ

Common Questions

Fire insurance covers machinery damaged by fire, explosion, lightning and allied perils. Machinery breakdown insurance covers internal failure events, mechanical fracture, electrical short circuit, operator error, which are excluded from fire policies. Most manufacturers need both.

No. Machinery breakdown insurance covers sudden and unforeseen physical damage. Gradual deterioration, wear and tear, rust, corrosion and design defects are excluded. A sudden breakdown event caused by a latent defect is typically covered; the deterioration leading to it is not.

Yes, subject to inspection and typically a higher deductible for aged components. Older machinery may carry specific exclusions or conditions relating to identified worn components. We manage this through a pre-inspection survey with the insurer, agreed in advance of placement.

The Loss of Profits (or Machinery BI) extension covers gross profit lost during the period your production is reduced or stopped as a direct result of an insured breakdown. The sum insured should be based on your annual gross profit and the indemnity period on your realistic maximum repair duration.

No. Routine maintenance, servicing, cleaning and inspection are operational costs and are specifically excluded. The policy covers the unexpected, the sudden, unforeseen event that neither you nor your engineers could have anticipated.