What is Machinery Breakdown Cover?

Many small businesses in New Zealand rely on machinery to get the job done each day. unexpected and unprecedented events can cause machinery to break down temporarily or permanently. Whether your machinery is out for a few hours, a few days, or a few weeks, the consequences could potentially be financially crippling for your small business. For example, if you rely on refrigerators or freezers to keep perishables cool and fresh, a breakdown of even a few hours could ruin thousands of dollars of stock.

And if machinery breakdown doesn’t cost you dearly in damaged stock or products, the business interruption could end up costing you dearly. What would you do if you were unable to deliver products promised to your clients on a deadline? Would you be able to cope with the loss of repuation?You should ask yourself if you have the financial buffer to be able to cope with cash flow issues associated with machinery breakdown. Ongoing business expenses include utilities bills, rent and wages.

If any of the above scenarios have you breaking out in cold sweats, Machinery Breakdown cover may be just the ticket for you and your small business. This insurance covers the cost to repair or replace specified machinery following a breakdown. Machinery Breakdown cover can save you from financial heartache and stress should the worst happen to the machines that you rely on to get the job done. Kiwi small business owners field stresses and problems from all angles every day.

Don’t make your machines one of those stresses.

What’s typically covered?*

• The breakdown of the machinery specified on the insurance policy Schedule.

What’s typically NOT covered?

Loss or damage to specified business machinery arising from:

• Wear, tear or gradual deterioration;
• The replacement of expendable parts;
• Normal maintenance or a failure to undertake maintenance
• Fire, smoke, soot, or chemical explosion (other than an explosion of flue gas in boilers)
• Extinguishing a fire including subsequent demolition or repair work
• Lightning
• Impact of land borne vehicles, aircraft or watercraft
• Earthquake, subterranean fire or volcanic eruption
• Landslip or subsidence
• Storm; wind, water or flood
• Water escaping, discharged or leaking from any source which is external to the machinery insured
• Theft or burglary (as separate theft insurance can be purchased)
• Intentional or malicious damage

Did you know?

‘Breakdown’ refers to unforeseen and sudden physical damage to specified machinery which requires repair or replacement. There are a number of types of breakdown which are not covered by an insurance policy such as those related to wear, tear and gradual deterioration or a lack of service or repair.

Things to consider

• Is your business reliant on important and expensive machinery to operate?
• What would your business do if key machinery broke down?