Electrical / mechanical breakdown: What mechanical breakdown insurance covers?

Mechanical equipment falls under equipment breakdown insurance, which covers five categories of equipment: 1. Mechanical This includes specialized production and manufacturing equipment, motors, engines, generators, elevators and water pumps. Mechanical equipment often wears out or breaks down due to metal fatigue, vibration, misalignment or operator error. 2. Electrical This includes transformers, electrical panels and cables. Electrical equipment can arc, or short circuit, and cause the power to fail, or result in a fire or explosion. 3. Computers and communications equipment This includes computers, phone systems, voice mail systems, security and fire alarm systems. This type of equipment can be damaged by power surges or electrical fluctuations and could cause partial business interruptions or even shut your company down for days. 4. Air conditioning and refrigeration systems This type of equipment is usually costly to repair and can cause real havoc to business operations and income by driving customers away or allowing products to spoil. 5. Boilers and pressure equipment Depending on your business, a lack of heat or hot water can close the doors or your business. A malfunction of this equipment could result in more serious damage. How mechanical breakdown insurance protects your business Equipment breakdown insurance pays for repairs or replacement of damaged equipment resulting from an insured accident up to the limits of your policy. You dont need to own the building in which your business is housed in order to be covered. You are also covered if some of the equipment used by your business is leased or rented. Depending on the policy, your coverage could extend to portable equipment that is damaged when temporarily away from your business location as well as property owned by others in your care, custody or control. Additionally, equipment breakdown insurance covers the costs associated with the time and labor to repair or replace the equipment; business income losses caused by a breakdown; other expenses incurred to limit the loss or speed the restoration only if it reduces the overall costs; and the expense, for example, to replace spoiled or contaminated food or other materials damaged as a result of the equipment breakdown.

Transit risks from site to site (separate marine cover is required): What this Policy covers? Marine Cargo Policy covers goods (machinery, raw materials, finished goods etc) during transit under a contract of affreightment. This Policy covers physical loss or damage to insured goods during transits by (a) Sea (b) Post or parcels (c) Rail/Road/Air. The scope of cover shall be determined by the Institute Clauses attached to the Policy. Salient Features: 1. The policy is assignable (except in case4 of Sellers Interest Insurance) 2. The Sum Insured is fixed on Agreed Value basis. Normally with a margin of 10% on invoice price for incidental expenses 3. The premium rates depend on factors like nature of cargo, scope of cover, packing, mode of conveyance, distance and past claims experience 4. Policies can be issued for (a) Specific Transit. (b) Marine Open policy with periodical declarations and (c) Sales Turn Over Policy with quarterly statements.