Insure machines and tools against breakage

Insure machines and tools against breakage

insure machines and tools

Whatever the field of professional activity, it is inconceivable today to be able to exercise it without the help of various and varied materials.

Machine breakage guarantee: what are we talking about?

First of all, it is necessary to lay down some definitions allowing to understand the ins and outs of this business insurance.

The machine should be understood as professional equipment which is used for the exercise of professional activity. For example, a gondola, an oil derrick or the constituent parts of a factory, industrial equipment, fall within the definition of machinery. If we go down in size to the other extreme we find: power tools or computer hardware.
Machine breakdown is an accidental, sudden and unexpected event that is not related to wear and tear. It must also cause material damage to said machine and / or to its environment.
What are the risks that can be covered, and under what conditions

As indicated above and in general, the risks covered by this property insurance must be random and unpredictable, and occur accidentally. Here are a few non-exhaustive examples, which concern all types of activities.

An error, negligence or the fault of an operator on a machine tool.
The breakage of a component part of the machine, causing an explosion or a fall.
Accidental overheating due to internal electrical or electronic components, or undetectable degradation of the bearings
The bursting of a hydraulic or pneumatic line, causing damage to the machine itself.
It should be noted that fire damage caused by lightning, caused directly (lightning strikes on the machine) or indirectly (overvoltages, electric arcs), are generally not covered in first intention. They must therefore be the subject of additional guarantees.
In general, risk coverage applies to machines in operation and in normal use, in a fixed location defined in the contract, your business premises for example. On the other hand, storage (awaiting commissioning or placing "in a cocoon"), tests, travel (transport for a change of place of operation), etc., must be covered by optional guarantees to be covered by the assurance.

What Does Machine Breakdown Insurance Not Cover?

As a general rule, all risks arising from willful misconduct on the part of the insured, as well as those resulting from a foreign or civil war. Likewise, prior knowledge of the cause of the damage by the insured falls under the exclusion of cover.

Specifically for machinery breakdown contracts, there are a number of exclusions concerning.
General wear and so-called wear parts such as: drill bits, lamps, discs, conveyor belts, etc.
All uses not specifically provided for by the manufacturer, such as tests and experiments, temporary repairs, unauthorized modifications, etc.
Carrier vehicles, which must be covered by their own professional vehicle insurance. On the other hand, a certain number of exclusions can be redeemed and thus be the subject of a guarantee, if the insurance company allows it.
Damage due to natural disasters (excluding the law on natural disasters).
Strikes and riots.
Fire, explosion and theft which can also be included in professional comprehensive contracts.
All ancillary costs such as: clearing, transport, labor, various rentals, operational loss, decontamination, etc.
Is machinery breakdown insurance really useful?

From the self-employed person to the plant manager, a business manager must protect the human element on the one hand, through supplementary health / retirement insurance, etc. But also the material element that are machines. These indeed constitute the very basis of the production tool, which, if damaged, will generate financial losses for the company, which could jeopardize it. Likewise at the present time, a clientele is increasingly precarious, and likely, in the event of an extension of the deadlines, to turn to the competition.

Finally, remember that computer equipment (vital for the activity of the company) falls under the category of machines. While it is possible to settle for a simple backup disk for laptops, it is quite different for enterprise servers and their infrastructures, terminals and peripherals. In view of their financial value, their interconnection and the strategic business data they contain, they must imperatively be covered by specific insurance contracts for IT equipment.