Machinery insurance refers to the insurance of machines. This insurance is applicable to any machine that generates electrical power, for example, generators, motors etc. Machinery insurance include the damage to not just the machine, but also to the surrounding area through explosions, fire etc.
If you have ever tried to settle a simple insurance claim related to breakdown or damage to machine or equipment, you will know how difficult it is to get the company to pay for additional damages like destruction of property, loss of business etc. Machinery Insurance covers not just the damage to the machine, but also other damages caused by the malfunctioning machine. These damages may include business loss and property damage.
Who is a potential candidate for machinery insurance?
Anyone who runs any kind of business that uses electrical or mechanical devices of some sort. Many people have the misconception that Machinery Insurance is only for large factories and manufacturing units. As a small business owner, you probably do not use heavy machines, but even the smallest of businesses use equipment like air conditioners, refrigerators, ovens, coffee machines etc. Malfunction in any of these equipments could cause an explosion or fire, damage to neighboring as well as your own property and business loss. Machinery Insurance will cover all these damages.