Machinery Breakdown Insurance: Scope, Costs and Benefits

Machines and systems are indispensable in manufacturing and production operations - be it in industry, on construction sites or when renting work platforms or other construction machinery. But unforeseen damage can cause high costs.

This is where machine 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 machines.

Briefly explained: What is machinery breakdown insurance?

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

It covers the costs of repairs or, in the worst case, the replacement of the insured machines. In contrast to comprehensive insurance, it offers good all-round protection.

Which machines and equipment can be insured?

Machinery breakdown insurance protects stationary and mobile machines . 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 machines such as mobile generators can also be insured to eliminate financial risks in the event of tipping or total loss. Choosing the right cover depends on the area of ​​use 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 is important to distinguish whether it is a separate machine breakdown insurance policy or the protection provided by a rental company.

Individually taken out insurance often offers more comprehensive coverage options and can be tailored to the specific requirements of the machine owner.

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

Ideally, your own machinery breakdown insurance will cover the following damages:

• Operating errors 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 events.

• Natural events: floods, inundations or similar unforeseen environmental influences.

• Costs for repairing 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 machine breakdown insurance

The machine breakdown insurance can optionally also cover additional costs that arise in connection 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.
• Recovery costs: Costs for recovering machines, e.g. after an accident or tipping over.
• Movement and protection costs: Expenses to bring machines to safety or prevent further damage.

Through this comprehensive coverage, companies minimize the 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 machine 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 using an excavator on unsuitable terrain.
• Partial damage that is 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 should include machine breakdown insurance in the rental price or in the offer. If nothing is mentioned about this, you should definitely ask before renting whether and to what extent insurance cover is available.

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

Frequently asked questions and answers about machine breakdown insurance

What is covered by machinery breakdown insurance?

Machinery breakdown insurance covers damage to stationary and mobile machines caused by operating errors, material defects, short circuits, explosions or external influences.

What does machinery breakdown insurance pay for?

It covers repair costs, costs for restoration or, in the event of a total loss, the replacement of the insured machines.

How expensive is machinery breakdown insurance?

The cost of machine breakdown insurance varies depending on the scope of insurance, tariff, condition and type of machine. Premiums usually start at around €250 per year per machine, depending on individual requirements and risks.

When does machinery breakdown insurance make sense?

It is useful when unforeseen damage could cause high costs or downtime, especially for landlords and operators who use machinery and equipment intensively.

Conclusion: Why this insurance is essential for tenants and landlords

Whether stationary or mobile machines: in many cases, machine breakdown insurance is an indispensable protection against high repair costs, business interruptions and unforeseen risks.

It offers a comprehensive price-performance ratio and ensures that damaged machines can be repaired or replaced quickly. Insure your machines to be covered in the worst case scenario and, especially when renting construction machinery, make sure that the rental company provides machine breakdown insurance.