MACHINERY BREAKDOWN INSURANCE

This policy covers “accidental physical damage” to equipment while it is in use or when the equipment is at rest. If machinery is damaged while being cleaned or moved, coverage is extended under certain circumstances. If the machinery can be repaired, the insurance covers the expenses to restore the equipment. If the machinery is beyond     repair, insurance pays the actual cash value of the equipment before the loss minus thesalvage or freight costs.

Machinery breakdown insurance is also referred to as equipment breakdown or    mechanical breakdown insurance. The insurance is purchased by any industry or  business that may experience an accidental breakdown of its machinery. The  insurance typically reimburses policyholders for damage to property and, in some cases,   interruption in business activities. For example, if a key piece of equipment at a manufacturing plant were to stop working and cause production to  come to a standstill, the policy pays to repair the equipment as well as reimburse the business for any profits that would have been earned if the equipment was still operational, subject to the policy terms, conditions and exceptions