Key Machinery Break-down

Companies often depend on specific, complex machinery. Despite the precautions that companies take in making provision for possible problems, there are frequently unforeseen cases, and the company suffers from the consequences of any stoppage to the aforesaid machinery. 

 

In such a situation, it is vital to take two actions:

> Reduce stoppage time as far as possible.

> Offset the costs incurred by the repair, the start-up and loss of earnings owing to the stoppage.

The coverage we offer greatly facilitates the first point and provides a solution for the second one.

It is a "fully comprehensive" type of policy, characteristic of and exclusive to the so-called technical branches for risks inherent to the operation of machinery.

 

Risks covered:

Material damage characteristic of the machine and additional expenses:

> Internal: inexperience, negligence, malicious acts, the direct action of electrical energy, design faults, faulty assembly or materials, centrifugal force, lack of water in steam apparatus, introduction of foreign bodies, lubrication defects, loosening of components, overloads, failure of regulating devices, etc.

> External: Fire, explosion, theft, subsidence, meteorological phenomena, malicious acts, blows, overturning, falls or crashes, etc.

 

Loss of earnings as a consequence of the breakage of the machinery. It is essential to evaluate the replacement time. In this case, we must consider that the breakdown of a small machine may result in a lengthy stoppage for the company (the typical bottlenecks in industrial processes).

 

Insured value:

The insured value must coincide with the cost of replacing the machinery and it is important to have a maintenance contract with the supplier.

Exceptions to this type of policy are cold rooms, including the deterioration of refrigerated or frozen goods, the insurance of stores or silos, and the spillage of contents or the power failure supplement in electrical generation plants.

This is a guarantee with high technical complexity which requires individuals conversant with the same, as well as with the operation of assembly or industrial lines with an intensive use of machinery. To this end, we have industrial engineers who determine the cases to be covered and the damages to be paid.

 

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