We all at some point in time rely on different equipment or machines to run like clockwork. But as powerful and efficient as these equipment are, they too, experience breakdown from time to time. When they do get damaged or broken, it can cost thousands of dollars to get them repaired or replaced. Furthermore, people are often within the vicinity of this equipment, so there’s always a chance that someone – whether a passing by or the equipment operator himself – could get hurt


This is a policy which covers financial loss incurred by the insured due to loss or damage to machinery as a result of sudden accidental electrical and mechanical breakdown. It reimburses the insured for the cost of repairs or replacement of machinery of like nature. This insurance can be taken by the individual owner of the machine or a person or company having financial interest in the machine.


The policy covers all kinds of electrical and mechanical breakdown resulting from the  following incidents: – Faulty materia V workmanship of the machine, Action of centrifugal forces contributing to disruption of the rotating parts, Failure of lubrication due to malfunctioning of lubricating Oil pumps or its breakdown, Malfunctioning or failure of safety devices, Electrical short-circuiting including electrical fire originating from failure of insulation and or over voltage or under voltage conditions, Abrupt and sudden stoppage of other connected machinery, Entry of foreign bodies into running machine, Inexperienced operations causing damage due to error of judgment or error in operation.


  • You get to insure important and expensive equipment, whether owned or hired. This pays for the repair or replacement of your equipment in the event that it gets damaged or lost due to accidents like external calamities, fire, explosion, and lightning strike; or due to malicious acts like theft, vandalism, and fraud.  
  • You get to take advantage of coverages that go beyond those provided by standard policies. For example, equipment damage caused by factors like mechanical breakdown, motor burnout, voltage spikes, and even operator mistakes can be covered.
  • You can obtain coverage for third-party liability. This pays for the damages or injuries that you or your employees may cause to other people while at job.
  • You can obtain coverage for personal injury protection and medical payments. This pays for injuries that you or your employees may sustain while doing your jobs.
  • You can obtain coverage for your equipment’s accessories, tools, spare parts, and other essentials.