Machine Breakdown Insurance

What happens when your company's equipment breaks down?

The first problem is the cessation of

You need to consider every eventuality arising from this situation. For example, you need to think about an alternative way of ensuring your production. If you don't have a spare machine, the only options available to you will be to lease equipment or the purchase of replacement equipment. These two perspectives are obviously synonymous with additional costs. Then there are the constraints of delivery times. The inconvenience of faulty production equipment can lead to cancellation of the order, which in turn can result in losses, a questioning of your professionalism and other consequences.

It's worth pointing out that technical problems such as short-circuits or breakdowns of machinery such as boilers or other appliances are not covered by property insurance. They are covered by equipment breakdown insurance. This insurance policy covers the various technical problems that arise on electrical parts, air conditioning, pressure vessels and mechanical machinery.

Electrical problems

All production equipment that runs on electricity is categorized under this heading. It's also worth noting that the entire electrical system is of considerable value within a building. Items such as transformers, solar panels and wiring are all valuable equipment to be found within a building. In the event of a power cut, photovoltaic panel failures often bring production to a halt. For a company, this is a catastrophic situation that can lead to heavy losses.
For a shopping mall For example, a power cut lasting several days can result in losses of up to 3,000,000 $. This gives an idea of the importance of the power system.

Problems with conditioning systems (refrigeration and air conditioning)

The majority of refrigeration and air conditioning breakdowns are included in equipment breakdown losses. This is due to the presence of mechanical, electronic and electrical components. In addition, this type of equipment is often costly to repair. In most cases, installation at height requires the use of special equipment such as ladders or even cranes. Such is the case with cold rooms. A rise in temperature of even ten degrees or so is enough to cause considerable costs, particularly in terms of interrupting the chain of preservation. Added to this loss are repair costs and the possibility of production stoppages. It is important tobusiness insurance for equipment breakdown.

Problems associated with pressure vessels

Pressure vessels and boilers have one thing in common: the difference in pressure level between their internal and external spaces. These include cookers, sterilizers and all types of cleaning equipment, as well as hot water and steam production equipment.

Breakdowns of this kind are often due to poor installation, sloppy maintenance (poor cleaning or lack of supervision), inadequate safety arrangements or residual build-up.

To illustrate the effect of a breakdown involving refrigeration and air-conditioning equipment, here's a small example. Due to poor maintenance, the hot water system in a laundry room suffered a pressure explosion. The damage caused by the explosion was reflected in the walls and ceiling. The explosion also injured two people. In terms of costs, this simple technical problem caused 57,450 $ in losses, including 31,700 for the destruction of the installations.

Communication problems

Communication problems include the failure of telephone, alarm and fire prevention systems, and computers in distribution units. These devices often contain fragile electronic components, making them vulnerable to frequent breakdowns.

Fluctuations in electrical current, manufacturing or installation faults, pests, exposure to humidity and incorrect use are all factors that can cause problems with communication and information systems. For example, due to a telephone failure, a property developer suffered a loss of 39,000$.

Problems with mechanical devices

First of all, we need to identify the problems that are considered to be mechanical. For a company, these are the breakdowns that occur on production and transmission equipment, and on all equipment powered by mechanical energy. These include elevators, for example, as well as all devices powered by electric motors, such as water pumps, fans, etc. These installations are often found in production plants or on company premises.

When it comes to mechanical breakdowns, there are many reasons. These include vibration, operator error and the durability of the components. The source of the problem may also be poor controls. Today's professionals use electronic devices to carry out these checks, but this method does not take into account problems outside the functionality of the machines. Hence their exposure to so-called equipment failure. It is therefore important to insuring your business for these risks.