Machinery breakdown insurance
Machinery breakdown insurance covers three kinds of equipment: pressure, electrical and mechanical. Accordingly, boilers, compressors, turbines, transformers and electrical panels are covered, while production and computer equipment can be added through a special rider. Elevators, mobile equipment and rolling stock are not included.
Commercial insurance contracts typically do not extend coverage to equipment breakdown — making it all the more important to add this kind of protection.
This type of policy covers accidents involving insured objects and that cause failure or sudden disruption to occur, leading to immediate damage and requiring repair or replacement. It should be noted that the wear, damage or corrosion due to maintenance are not covered.
For example, a short-circuit that stopped a safety device from functioning and caused insured equipment to become damaged would be eligible. So would operator error leading to equipment damage.
You can also add a perishable goods rider. For example, a butcher who loses the contents of his refrigerator due to compressor failure can be compensated for lost goods.