If you run a business, then you surely understand that damage to machinery costs very high. Any physical damage to small or big machinery can pose a huge loss to the business. Therefore, your business must be always ready to overcome that loss. This is important to ensure that your business will continue to work properly even after a loss.
You should purchase plant & equipment insurance to ensure that you avoid the loss. Choose a good and reliable company for property plant and equipment insurance.
What is Machinery Insurance?
Machinery insurance gives an insurance cover that helps to cover the loss of physical damage that occurred to the machine. Mostly all plant and equipment insurance covers the physical damage, accidental breakdown, and cost of repair and replacement. Some companies also provide the cover to other additional aspects as well such as customs duty, machine foundation, cost, and air-freight.
What Machinery Insurance Covers?
Machinery insurance covers any loss that occurred to the machinery due to any accidental damage. It covers loss caused by both internal and external causes. The common reasons for the damage are short circuit, loosening parts, lack of lubrication, and excessive speed.
Other damages covered by the machinery insurance are:
1. Abnormal operating of the machine.
2. Falling and collision resulting in breakdowns.
3. Carelessness in the operations and management of machinery.
4. Turbines bursting, hydraulic cylinders or other apparatus subjected to internal pressure.
5. Damage to machinery occurred due to fire.
Coverage is provided by the insurance company for the machinery in both working and rest conditions.
Now, let’s discuss the other two different parts of the loss which include partial loss and total loss.
Partial Loss
When a partial loss occurs then coverage will be provided including the full cost of parts. It covers air-freight charges, custom duty, labor charges, and dismantling charges.
Total Loss
Under total loss, the actual value of the item is covered before the occurrence minus depreciation value. Extra coverage is also given on the additional premium payment. This includes custom duty, freight, air freight, and third party liability.
How Machinery Insurance Function?
The machinery insurance covers the loss that occurs due to the sudden breakdown of machinery. The insured business gets the money from the insurance company. This money is given for the repair and replacement of the damaged machinery. Thus, insurance helps people to grow by overcoming sudden losses.
Documents Required for Claim Process
You have to submit various important documents to the insurance company to get a claim for machinery breakdown. The required documents include ID proofs, policy documents, machinery invoices, and engineer statement stating the level of damage.
On the Ending Note
Choose a good and reliable insurance company to get a proper plant and equipment insurance. Property plant and equipment insurance will save you lots of money on covering the damage that occurred on the expensive machinery. Plus, it will also save you all the hassle and tension of repairing the machinery.