This article explains all you need to know about Engineering Plant Insurance.. There are basic knowledge one need before going for any Engineering Plant Insurance
What is Engineering Plant Insurance?Engineering plant insurance, commonly known as “Machinery Breakdown Insurance”, protects owners or operators of fixed machinery, boilers and pressure vessels, by covering unbudgeted repair costs when breakdown or accidental damage occurs.
You May Read: Electrical Contractors InsuranceMachinery Breakdown (MBD) MBD provides effective insurance cover for plant, machinery and mechanical equipment at work, at rest or during maintenance operations. It covers unforeseen and sudden physical loss of or damage to the insured items, necessitating their repair or replacement.
Engineering Plant Insurance PolicyThis is a policy which covers financial loss incurred by the insured due to loss or damage to machinery as a result of sudden accidental electrical and mechanical breakdown. It reimburses the insured for the cost of repairs or replacement of machinery of like nature.
Although Engineering Plant Insurance Policy differs from insurance companies
You May Read: Contractors Professional Liability InsuranceAutomatic ninety days coverage for acquired plant similar to the plant already insured
Additional repair costs in relation to temporary repairs, overtime and express freight and hiring of temporary plant up to 50% of the total sum insured or $40,000, whichever the lesser
No FSL statutory charges
In relation to deterioration of stock
Payment for disposal costs reasonably incurredAdditional cost of replacing insulating oil or refrigerant following Insured Damage
No depreciation on damaged Plant repairs or replacement
Payment of reasonable loss minimisation costs
Automatic 30% sum insured seasonal increase.