Insurance Products
Engineering Insurance — Machinery Breakdown and Electronic Equipment
Engineering insurance covers sudden and unforeseen damage to production machinery, electronic equipment and technical installations, together with the resulting loss of output.
At a glance
- Status
- Optional
- Core cover
- 5 sections
- Quote turnaround
- Same business day
In a manufacturing business the most expensive downtime begins with a critical machine failure. Machinery breakdown insurance covers repair or replacement costs from operator error, short circuits, material fatigue, overvoltage and foreign object ingress. These internal failures — which fire policies exclude — are the most frequent loss type in production plants.
Electronic equipment insurance protects computer systems, servers, medical devices, POS terminals and security systems on an all-risks basis. Data carriers and the cost of reconstructing data can also be added, making it a critical product in healthcare, retail and technology.
Machinery breakdown loss-of-profit cover addresses the production stoppage cost, which often far exceeds the physical damage. For imported machinery with long spare-part lead times, this becomes the most valuable component of the policy.
What Is Covered
- Machinery breakdown
- Covers sudden and unforeseen damage from operator error, short circuit and material fatigue.
- Electronic equipment
- Protects computers, servers, medical devices and security systems on an all-risks basis.
- Data and software cover
- Covers the cost of reconstructing data lost as a result of covered damage.
- Machinery loss of profit
- Compensates fixed costs and lost profit from production halted by a breakdown.
- Portable equipment
- Extends cover to laptops and measuring devices carried by field teams off-site.
Who Is It For?
- Production plants, factories and workshops
- Energy, food, textile and chemical businesses
- Healthcare providers and imaging centres
- Data centres and IT-intensive companies
What Is Not Covered
- Normal wear, corrosion and gradual deterioration
- Manufacturing defects covered by supplier warranty
- Failures caused by neglected maintenance and servicing
- Consumables, cutting tools and routinely replaced parts
What Affects the Price
Premiums vary between insurers according to the factors below. We compare 27 partner insurers to find the best fit for your profile.
- Total replacement value and age of the machinery
- Nature of activity and number of shifts
- Existence and discipline of a preventive maintenance programme
- Indemnity period of loss-of-profit cover
Frequently Asked Questions
Is machinery breakdown included in a fire policy?
No. Fire policies cover external perils; internal machine failure requires separate engineering cover.
Is there an age limit on insured machinery?
Regularly maintained machines are generally considered without a strict age limit, though deductibles and premiums rise with age.
How is the sum insured determined?
On current new replacement value. Declaring book value leads to underinsurance.
Is data loss covered?
Data carriers and data reconstruction cover can be added to an electronic equipment policy.