Do you own and operate machinery?

Did you know that most standard business policies do not cover damage as a result of breakdown?

When businesses invest in heavy machinery, such as a printing press or CNC machines, they often assume that their standard commercial insurance policy provides full protection.

However, a crucial gap exists in that most standard business policies do not cover damage caused by machinery breakdown, testing, commissioning, dismantling or erecting or operator error.

What would you do if your printing press was damaged beyond repair due to breakdown and it was not insured? For companies reliant on large or specialist equipment, this exclusion can lead to devastating financial losses not only having to pay for the repairs but also the consequential loss.

A lot of businesses assume that if they have a maintenance contract, they have this covered which is a risky assumption. Maintenance contracts typically cover routine servicing and repairs due to wear and tear, but they don’t protect against accidental damage, mistakes made by employees, or the knock-on financial impact of a breakdown damage.

In fact, most industrial claims are caused by human error something a maintenance contract won’t help with.

How to Protect Your Business

To avoid being caught out by these exclusions, you should consider additional insurance options, such as an engineering policy covering breakdown, installation, reassembly, commissioning, operator error or business interruption.

Speak to us at Gillam Insurance if you want no nonsense clear honest advice from someone that genuinely cares.