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Machinery is the bread and butter of many businesses. If the overall operation and turnover of your business are dependent on expensive equipment and machinery, then damages and breakdowns could have a significant impact on your ability to operate. Such events could even cause you to temporarily pause business and that’s where machinery breakdown insurance comes in.

Many people assume that the breakdown of their machinery will be covered in their business interruption or commercial property insurance policies, but that’s not the case. This assumption can unfortunately prove to be a very unwelcome surprise when things don’t go to plan. 

That’s why the right insurance policy is crucial.

What is Machinery Breakdown Insurance?

Accidents and mishaps are inevitable when it comes to operating large and technical machinery. This is a specialized type of insurance that covers the sudden and unforeseen damage, breakdown, or repair of your machinery.

It also covers you against consequential losses caused by the breakdown such as loss of profits while you’re waiting for the machinery to be fixed and loss or spoilage of supplies and stock.

What Does Machinery Breakdown Insurance Cover?

This type of insurance can be tailored to suit the equipment you use and your specific requirements as a business. Examples of equipment that can be covered in a machinery breakdown policy include air conditioning, plant machinery, boilers, and electronic and mechanical equipment. 

Cover generally tends to include the breakdown, repair, and replacement of equipment, interruption insurance, costs to hire temporary equipment to keep the business in operation, expediting expenses, and professional fees relating to quantifying a loss.

Machinery Breakdown Insurance Exclusions 

There are various exclusions that are not typically covered in this policy:

Some examples include loss or damage to machinery due to:

  • General wear and tear or deterioration
  • Failure to undertake standard maintenance 
  • Replacing expendable parts
  • Natural disasters such as volcanic eruptions, earthquakes and lightning strikes
  • Malicious or intentional damage
  • Theft or burglary (can be added on as a separate policy)
  • Demolition or repair work 

Every insurance policy is different and will have various inclusions and exclusions. For a more accurate idea of the insurance policies available and what they cover, please get in touch for a tailored quote.

Get your Machinery Breakdown Insurance Quote Today

At Insurance HQ, we have access to some of the most comprehensive and cost-effective machinery breakdown insurance providers in Australia. 

We have over ten years of experience in the truck and machinery insurance industry, and our award-winning brokers can help you find tailored insurance policies for your unique requirements.

You can request a quote online or call one of our experienced brokers on 1300 815 344. We’re here to help you get the best possible insurance coverage for your business.