Machinery Breakdown Insurance: Scope, Costs and Benefits

Zusammenfassung

Machinery breakdown insurance protects stationary and mobile machines against damage caused by operating errors, technical defects, external influences or transport accidents.It covers repair costs or replacement in the event of a total loss.

Especially for rental machines such as work platforms or forklifts, insurance through the rental company is essential.Pay attention to the insurance coverage included and the amount of the deductible – this will minimize your risk in the event of a claim.

Machinery and equipment are indispensable in manufacturing and production operations – whether in industry, on construction sites, or when renting work platforms or other construction equipment. However, unforeseen damage can result in high costs .

This is where machinery breakdown insurance comes into play – if available: It offers comprehensive protection against the financial consequences of damage and ensures that operations can be resumed quickly, especially in the case of rented machinery.

Briefly explained: What is machinery breakdown insurance?

Machinery breakdown insurance covers the costs of operational and material damage to machinery and equipment caused by operating errors, short circuits, explosions or other unforeseen events.

It covers the costs of repairing or, in the worst case, replacing the insured equipment. Unlike comprehensive insurance, it offers good all-round protection.

Which machines and equipment can be insured?

Machinery breakdown insurance protects stationary and mobile machinery. The insured machines include:

• Stationary machines: such as production plants or stationary construction machines.
• Mobile and transportable machines: including work platforms , forklifts and excavators.

Transportable machinery such as mobile generators can also be insured to eliminate financial risks in the event of tipping or total loss. Choosing the right coverage depends on the application and the specific hazards the machine is exposed to.

What does machinery breakdown insurance cover?

In the event of damage , different types of damage may be covered depending on the type and scope of the insurance . It's important to distinguish whether the insurance is a separate machinery breakdown insurance policy or the coverage provided by a rental company.

Individually purchased insurance often offers more comprehensive coverage options and can be tailored to the specific needs of the machine owner.

In comparison, the protection offered through the landlord is limited to the basic risk.

Ideally, your own machinery breakdown insurance covers the following damages:

• Operator error or clumsiness: Damage caused by human error.
• Internal operational damage: Defects in engines, transmissions or other central components.
• Failure of measuring, control or safety devices: for example due to defective sensors or control units.
• Lack of water, oil or lubricants: Damage caused by inadequate supply or negligence.
• Fire, lightning and explosion: Damage caused by fire or electrical incidents.
• Natural events: floods, inundations or similar unforeseen environmental influences.
• Costs for the repair of damaged spare parts , such as a hydraulic control unit.
• Theft, burglary and robbery: Protection against the loss of the machine by third parties.
• Damage during transport: Damage that occurs during loading or transport.
• Replacement in the event of a total loss.

Optional additional services of machinery breakdown insurance

Machinery breakdown insurance can optionally also cover additional costs associated with a damage event. These include, for example:

• Cleanup and disposal costs: Costs for removing debris and damaged machine parts.
• Soil decontamination and disposal costs: Coverage for damage that causes soil contamination.
• Salvage costs: Costs for the recovery of machinery, e.g. after an accident or tipping.
• Movement and protection costs: Expenses incurred to bring machinery to safety or prevent further damage.

This comprehensive coverage allows companies to minimize financial consequences and maximize the operational capability of their facilities.

Damage to a work basket of an articulated telescopic work platform .

Common exclusions in machinery insurance

Although machinery breakdown insurance applies in many cases, there are also exclusions:

• Damage caused by wear and tear or lack of maintenance.
• Operational damage caused by improper use, such as the use of an excavator on unsuitable terrain.
• Partial damages that are below the deductible.

Insurance coverage for rented construction machinery

This insurance is particularly important for renters and lessors of construction equipment such as work platforms and forklifts, as mobile machines on construction sites are often subjected to intensive stress and are operated by people who may be less experienced in handling them.

Machinery breakdown insurance provided by the landlord provides the necessary cover.

Important: Almost all rental companies usually include machinery breakdown insurance in the rental price or offer. If this isn't mentioned, you should definitely inquire before renting whether and to what extent the insurance coverage is available.

For each individual claim, the tenant must pay a deductible. The amount of this deductible varies and depends on the landlord.

Conclusion: Why this insurance is essential for tenants and landlords

Whether stationary or mobile machinery: In many cases, machinery breakdown insurance is essential protection against high repair costs, business interruptions and unforeseen risks.

It offers comprehensive value for money and ensures that damaged machinery can be repaired or replaced quickly. Insure your machinery to be protected in the worst-case scenario, and especially when renting construction equipment, make sure the rental company provides machinery breakdown insurance.