Why the machine park needs cover of its own
CNC controlled machines are worth many times more than the manually operated ones of the past, and they react more sensitively to mistakes in operation and maintenance. After a loss, whole assemblies often have to be replaced. Classic fire and property insurance does not help here, because it only responds when fire, water or storm are involved.
Machinery insurance moves precisely this financial risk to the insurer. Among other things it pays after operator error, clumsiness, faults in design, material and workmanship, after a short circuit and overvoltage, after the failure of safety devices, and in cases of wilful acts by third parties, for example when an employee deliberately writes off a machine.
What is paid and what you carry yourself
As a rule the insurer pays the cost of returning the machine to the state it was in immediately before the loss, which means spare parts, wages, freight and, depending on what has been agreed, express and overtime surcharges and the cost of air freight. In the event of a total loss the settlement is based on the indemnity value of the plant.
An excess is standard in this class and is deducted from the settlement. Its level is one of the ways you influence the premium. It is also important that the sum insured matches the replacement value of the machine, which means the list price including delivery costs, foundations and installation. Otherwise the insurer reduces the payment for underinsurance.
Loss of income is usually the bigger item
An important addition is machinery loss of profits insurance. After a breakdown, repairs often drag on for weeks because of delivery times for spare parts. The profit lost and the costs that keep running then quickly exceed the pure repair bill. That is particularly true of machines in the bottleneck area, for which there is no replacement and no alternative production route.
For controls, IT and measuring equipment, electronics insurance is worth adding. It is tailored to the typical electronics risks and in many cases also includes the restoration of data and software. Which plant belongs in which contract is something we settle on the basis of your asset list.
Send us your asset list.
We will tell you which machines need cover of their own and which are in good hands in the property policy.