Machinery Breakdown Insurance in South Africa

If your business relies on any form of equipment that generates your income, then you need Machinery Breakdown Insurance.

 Machinery Breakdown Insurance - Cover when putting your income at risk
Machinery Breakdown Insurance - eliminate all risks
when your equipment fails you

Why Machinery Breakdown Insurance:

Machinery Breakdown Insurance, is designed to provide cover against unforeseen and sudden physical loss or damage to the machinery by any cause subject to excepted risks. Machines are an integral part of all manufacturing and industrial units engaged in production of industrial and/or household goods.

These may be large industrial establishments or small and medium enterprises and any unexpected accident or breakdown to their critical machinery brings it to a standstill adversely affecting business and causing a financial strain towards repair or replacement of the affected machinery. The Machinery Breakdown Insurance offers coverage to your organization against these sudden and unforeseen accidents or events.

This insurance policy is extremely useful to protect manufacturing industry against heavy expenses necessitated in repairing of the machinery under breakdown – thus ensuring business continuity.

The Machinery Breakdown Insurance cover options are really very wide. It may extend to heating systems such as: Boilers, electrical systems, mechanical, air conditioning, refrigeration, communication networks and many others.

DIB Solutions (Pty) Ltd have partnered with reputable underwriters and various insurance companies in order to assist our clients with appropriate Insurance cover – we can therefore also assist clients with tailor-made products (where applicable) at competitive premiums. We provide a professional and personal service, as well as build long-term relationships with our clients.

There are a few leading insurers and underwriting managers offering products in this specialist insurance field – therefore discuss your individual needs with one of our experts.
 

Also note some of the important considerations when looking for Machinery Breakdown Insurance:

 
  • The Machinery Breakdown Insurance covers sudden and unforeseen damages arising from mechanical and electrical breakdowns and accidental external means to insured’s plant and machinery.
  • If the equipment is active and being used, a Machinery Breakdown Insurance claim must arise through physical loss or damage. The incident must be unforeseen and not because of poor maintenance and due to mechanical or electrical nature.
  • If the equipment is not active or being reassembled, you may still enjoy cover at the premises.
  • The insurer may elect to replace, repair or reinstate.
  • It is common practice that your sum insured should be calculated on the basis of current new replacement value. Keeping in mind that some plant and machinery equipment may have to be imported. This will also bring about installation costs, custom and duty fees that may also be payable. To re-install the plant, will also require current labour rates.
  • Take note of exclusions – Machinery Breakdown Insurance policies exclusions may include some of the following risks/perils:
    • Pre-existing defects;
    • Parts exposed to normal wear and tear – Deterioration of or wearing away or wearing out any part of any machine caused by or naturally resulting from normal use or exposure;
    • Contractual liabilities;
    • Overload experiments / tests / abnormal operating conditions;
    • Fire and allied perils;
    • Worn out parts not caused by the incident or risks covered under other policies.
  • Extensions: Cover may be extended to include deterioration of stock – if your products are reliant on a controlled temperature. This cover may only come into effect upon a valid Machinery Breakdown Insurance claim.
  • Add-on covers to consider:
    • Escalation of sum insured;
    • Third party liability;
    • Additional customs duty;
    • Holiday and overtime rates of wages.
  • Ensure that you understand the terms, conditions, coverages and exclusions are as per the wordings of the standard Machinery Breakdown Insurance policy.
 

Please contact us today for fast, friendly, professional advice and service!


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