Regardless of whether stationary Machine Tools and printing machines or mobile and transportable devices (excavators, cranes, etc.) - they all have something in common. They represent important company assets. If a machine breaks down or is damaged, the high repair or replacement costs can even pose a threat to the company's existence. And it is precisely for this reason that all these machines and devices require perfect insurance protection in addition to optimum maintenance and care. But what insurance do you need for this? Quite simply: good Machinery Insurance. You can find out what this policy is all about below.
What is Machine Insurance?
Machine Insurance is also known as "Machine Breakdown Insurance". It is liable for damage to transportable and stationary machines and technical systems. This includes, for example, printing machines, production plants and power machines for driving work machines. Wheel bearings, forklifts or even excavators can also be insured Via Machine Insurance (excavator insurance). In summary, Machinery Insurance offers businesses more comprehensive and specialized coverage than business contents insurance. Because machine breakage, product defects and machine breakage are just a few examples of the scope of coverage of the important machine breakage insurance.
Who is it suitable for?
Machine insurance is particularly suitable for companies with numerous technical equipment or expensive and individual machines. After all, it protects both mobile machines and stationary systems. Machinery Insurance is particularly important when the machine park is worth several million euros.
Important: Even those who want to finance a machine park with a loan should definitely deal with the topic of “machine insurance” in more detail. Because most lending banks require such a policy here.
What does Machine Insurance Cover?
Depending on the machines and systems that you use in your company, most insurers have different types of Machine Insurance available to you. These differ in their scope of services and adapt to the respective circumstances. You can put together a tailor-made insurance package for your business. You usually have the following to choose from:
Machinery Insurance for mobile and transportable machines (protection of excavators, forklifts, combine harvesters, pallet trucks, etc.)
Machine Insurance for stationary systems (protection of printing presses, production and manufacturing systems and Co.
Scope of services of machine insurance for mobile and transportable machines or systems
As already mentioned, the Machine Insurance is liable for mobile or transportable machines, systems and equipment such as cranes, forklifts, excavators, lifting trucks and agricultural machines, i.e. tractors, combine harvesters and Co. However, transport vehicles that are used exclusively for the transport of people or goods are not insured. This may include, for example, buses, trucks and motor vehicles. Watercraft and aircraft, work equipment, consumables and auxiliary and operating materials are also not part of the insurance. The insured damage to mobile and transportable machines usually includes the following:
- Short circuit, over voltage and over current
- operator error and clumsiness
- Defects in construction, workmanship or material
- Lack of oil, lubricants and water
- Failure of safety, measuring and control devices
- Fire, explosion and lightning
- Forces of nature (flood, earthquake, storm, frost and ice drift
In addition, some Machinery Insurance Policies also cover loss, theft, burglary and robbery of insured machinery. But what does the insurance actually do in the event of a claim? If the damage is partial, the machine breakdown insurance covers the costs of restoration. If, on the other hand, there is a total loss, it usually reimburses the new value of the insured machine. Provided the damage occurred within the first year of purchase or receipt. Otherwise, most insurers will pay replacement value. If the machine is not older than seven years, the reimbursement is often lower.
Scope of services of machine insurance for stationary systems
Machinery Insurance for stationary systems protects permanently installed mechanical equipment. These include, for example, machine tools or machines for processing plastics or wood. Additional devices and spare parts are often also insured up to a coverage of 10,000.
The damage that is also insured under Machine Insurance for stationary and mobile systems includes the following:
- Human Causes
- Product Defect
- Malfunction
- Forces of Nature
Worth knowing: Do you want to cover yourself against the ongoing costs and the unearned profit? Then you should definitely look around for additional machine business interruption insurance.
Important: When does the Machine Insurance not pay in the event of a claim?
- Intentional damage
- war and similar events
- Nuclear energy, radioactive substances or even nuclear radiation
- During sea transport
- Defects that already existed before the insurance was taken out
- Operational signs of wear and normal wear and tear
You are responsible for these costs
There are various factors that can influence the costs of Machine Insurance. For example, one of the most important factors is the type of machine you want to insure. Some machines are more expensive to insure than others because of their size, value or the type of risks they face. So insuring a large factory machine operating in a high-risk environment will cost you more than insuring a small office machine.
Another cost is the desired scope of services. Because a comprehensive policy that covers a variety of risks is of course more expensive than a simple insurance policy. The agreed amount of the deductible is just as decisive for the costs incurred. If you choose a higher deductible, the premium will be significantly lower. However, you will have to pay more out of your own pocket in the event of damage.
Another factor that can affect the price of Machinery Insurance is the type of payment. Because an annual payment is usually a little cheaper than paying in monthly contributions.
As you can see, the cost of Machine Insurance depends on numerous factors. And that is why it is all the more important to carry out detailed research and to compare different offers. This is the only way to find the best insurance policy at the best price-performance ratio. It is worth investing time and effort in finding the right machinery breakdown insurance to best protect your business from potential damage and risks.
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- Equipment Insurance
- Own Fault
- Share of Debt
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