Insurance against machinery breakdown

A quality insurance policy is the only correct form of protection of your equipment from unexpected defects.

What can be insured by this policy?

The insurance, practically, covers all machines, working devices and installations, inside or outside the building structure.

By stipulating uniform premium rate you may insure complete equipment regardless of the type.

What is the property insured against?

The answer is very simple: against all risks, other than expressly excluded situations that do not represent risks - fatigue, wear and tear, corrosion, etc.

The concept of insurance against all risks enables you to understand the purchased insurance coverage and makes claim settlement more efficient.

Your equipment is insured for the time:

• of normal operation in your premises or when hired and working in normal working conditions,
• mounting and dismounting for repair, as well as during the repair.

The insurance provides cover for:

• clumsiness and negligence of your workers as well as deliberate causing of damage,
• repair and replacement of parts, the damage of which was discovered during the overhaul operation (provided that they do not include gradual mechanical and chemical influences).

To which value you pay the premium?

The premium is paid to the sum insured that should, if not otherwise contracted, be equal to the price of new items of same characteristics, including all dependent expenses reduced by depreciation costs.

Premium savings can be achieved by eliminating frequent small claims from the coverage in which case the policy shall be used only to cover complex and expensive damages.

All claims shall be covered by insurance if you arrange for coverage without deductible (a percentage of your participation in a claim).

What part of damage does the insurer indemnify?

If you insure the property to the sum insured corresponds to its total value, the insurer shall indemnify:

• in case of destruction, the value of property (for which the premium was collected),
• in case of damage, the amount equal to the labour and material expenses required for repair.

It is possible to arrange for the insurance coverage to include expenses incurred for:

• earth works and finding places of damage to installations,
• overtime work and work during holidays and Sundays.

How to avoid the diminishing of indemnity?

The diminishing of indemnity refers only to the value of remainder and depreciation (if so contracted). If the value was correctly determined and equal to the sum insured, the insurance indemnity is equal to the damage actually suffered.

What else can you expect from your insurer?

Insurance covers the expenses incurred in preventing the damages and clearing up of places where the damage occurred.

There is a bonus (discount) to the premium even to 30% in the period to come, for achieving a good loss ratio in the previous three years.

You can also expect:

• engineering assistance with regard to prevention,
• expertise after a loss occurrence.