Machinery Breakdown Insurance
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Machinery Breakdown Insurance
The machinery you operate at your business faces numerous different risks every day. If anything happens it can lead to the halting of work or disruption of production, bringing about substantial costs.
Machinery Breakdown Insurance allows you to protect yourself against potential risks and large-scale losses.
Get Machinery Breakdown Insurance and guarantee the continuity of your business.
Coverage
- Operating errors (maintenance errors, incorrect use, lubrication faults, etc.)
- Damages arising due to negligence or carelessness on the part of employees or third parties
- Environmental causes (storms, frost, movement of melting ice, etc.)
- Electrical and atmospheric events (short circuits, sparks, high voltage and induction, insulation faults)
- Breakdown due to centrifugal force
- Water cogging, sudden heating and cooling, contraction
- Congestion or infiltration with impurities, and other Machinery Breakdown Insurance elements which are not noted here
Supplementary Coverage
- Strikes, lock-outs, commotion, public disturbances, acts of terrorism and sabotage
- Express shipping, overtime, leave-pay and raises
- Foundations and bases of the machinery
- Lost profits due to machinery breakdown
- Extended motor insurance supplementary coverage for moving machines (particularly construction machinery)
* The coverage elements above can be expanded with the inclusion of risks such as impacts, crashes, rollovers, landslides, fires, lightning, earthquakes, or floods as well.
Frequently Asked Questions
What are the leading risks covered by Machinery Breakdown Insurances?
What kinds of machinery can be covered by Machinery Breakdown Insurance?
Mechanical machinery and installations which have completed testing and are in normal operational order (all kinds of construction machinery, pumps, compressors, transformers and generators, heating and ventilation systems and industrial machineries, such as those used in textiles, metallurgy, papermaking, cement works, etc.) and their associated financial losses can be insured.
What is the insurance term for Machinery Breakdown Insurances?
Machinery Breakdown Insurances are often effected for terms of one year. This branch provides insurance coverage for timeframes and is considered part of the annual risks group. However, where shorter machinery breakdown insurance timeframes are required this is also possible in case of seasonal or lease-based works.
How is the insured sum calculated?
The sum insured in Machinery Breakdown Insurances should be the price for replacing the equipment, in other words, the price of a new machine. The price for replacing the machine with a new one refers to that of an equivalent unused device meeting the functions of the device in question.
The purpose of the insurance is to maintain the operational order of the machinery.
The premium will be calculated with reference to the new (unused) replacement costs because even in the case of partial damages, the replacement part will serve the purpose of preventing a fall in the machine’s performance levels. In addition, customs duties, taxes and charges as well as transportation costs, if any, should be taken into account when setting the figure.
If the insured asset suffers total loss, where it is impossible or excessively costly to render the machinery operational once again, the claim payment shall be based on the current price the machine would have commanded in the market as of the date of damage.
Having these policies refer to the rate of inflation or based on a foreign currency with a view to maintaining a current insurance price and preventing a risk of under-insurance in time will be beneficial for you.
Which optional supplementary coverage elements are offered? Which risks are covered?
- Physical explosion
- Deformations and damages arising due to any covered Machinery Breakdown damage in the foundations and bases of the machinery (the price of the foundations and bases should be specified).
- Fast shipping costs following the damage and the overtime fees arising in order to remove the damage (provides coverage against express shipment and overtime fees which may be incurred to eliminate the damage as soon as possible; a limit should be specified).
- Strikes, lock-outs, disturbances and civil commotion and acts of terrorism (provides coverage against the damages caused by strikes, lock-outs, civil commotion or acts of terrorism).
- Expanded motor insurance (provides coverage against impacts, crashes, rollovers, land subsidence, rockfall, fires, lightning, earthquakes, floods/flooding and avalanche risks, in addition to mechanical breakdown and failure of moving machineries which can move on their own or are controlled by an operator).
Which cases are excluded from the Machinery Breakdown Insurance coverage?
- Parts of the machine which should normally be changed regularly (light bulbs, drill bits, saw blades, templates, models, molds, chains, bands, hammers of grinder and crusher machines etc.). If these items are damaged on their own, the claim will not be covered; however, if they are damaged due to another reason, they will be covered.
- Chemical material and gas explosions or explosive dust explosions due to electrical charge (such risks can be covered by fire insurance).
- The results of extinguishing and rescue operations that may arise due to fire or related reasons (such risks can be covered by fire insurance and workplace insurance).
- Direct impact of lightning.
- Theft and attempted theft.
- Natural disasters such as earthquakes, floods, landslides, rockfall, avalanches and volcanic eruptions (only storms and frosts are covered among the natural disasters).
- Damages arising due to nuclear incidents.
- Cases where the insured acts intentionally or with gross fault.
- Wear, tear, rust and rot.
- Wars, rebellions and military and disciplinary actions required by these.
- Dispositions by public authorities
- All kinds of lost profits and financial liabilities
- Damages that may arise due to the use of the machine before the elimination of the damage, during the term of the insurance
What information is required for accurate pricing of Machinery Breakdown Insurance?
- Name/title of the insured
- Risk address
- Insurance term
- Overall sum insured and individual prices of the machinery
- Brands and models of the machinery
- In addition to the specification of the required supplementary coverage elements, certain other pieces of information shall also be required for accurate pricing. For instance:
- Usage period
- Regular maintenance
- User
- Other protective measures
- Diğer korunma önlemleri
- Model
- Capacity
- Origin
- Claims history
- Power source
- Water source (if any)
- Production year (maximum three years)
* The complete provision of the information noted above is required for the accurate pricing and accurate setting of the deductible figure.
Relevant Documents
The information and documents you may need with respect to the product you are interested in are provided below. Should you have any questions, you can get even more detailed information by contacting our nearest agency.
General Terms and Conditions of the Machinery Breakdown Insurance