The insurance is against unforeseen and sudden damage to the insured machinery from such causes as
- Faulty materials, design, construction or erection, vibration, mal-adjustment and mal-alignment
- Defective lubrication, loosening of parts, abnormal stress, molecular failings, self-heating, centrifugal force
- Excessive electrical pressure whether due to atmospheric electricity or otherwise
- Failure of insulation, short circuits, open circuits or arching
- Failure of connected machinery or protective devices
- Lack of skill, carelessness or malice of persons whether in your employment or not
- Falling, impact, collision and the like
- Storm, tempest, obstruction or the entry of foreign body
The main elements of the insurance are thus electrical and mechanical breakdown, and accidental damage from extraneous causes, while the sum insured on each item should be the replacement value to avoid under insurance. These are few examples of the kind of items suitable for this type insurance. Boilers, Air Compressors, Refrigerating Plant, Electrical Motors, Transformers and Switchgears, Process Machinery and Lifting Plants e.g. cranes, forklifts, etc.
There are common causes of machinery breakdown such as;
- Carelessness of the machine operators
- Overheating due to the failure of lubrication or low water conditions for boilers
- Overloading by underestimating the weight of a load
- Defective safety devices.