Provision of Cover
This policy provides cover against breakdown and operator error for fixed and installed equipment used on premises owned or occupied by the insured customer situated worldwide (restrictions could apply).

  • Breakdown: the sudden and unforeseen breaking, distortion, overheating or electrical burnout of any part of the machinery which occurs whilst the machinery is in use, resulting in its immediate stoppage of function or partial stoppage of pre-programmed function and requiring repair and/or replacement before normal work can be resumed
  •  Operator Error (optional): damage resulting from accidental errors caused by operators employed by the Insured including the incorrect usage or programming of the machine by the operator

If a machine breaks down, the insurer will indemnify for the costs to put it back in working order. This includes the costs of labour, parts and reasonable costs of travel, including any overnight stay required spent on behalf of the insured by the repair agent to repair the machine. Indemnity will also include the expediting costs to ship parts from overseas if this is the only way to repair your machine. Indemnity covers the costs of dismantling and re-erection less the value of any salvage parts. The insurer may decide to repair damaged parts rather than replace them.


  • Repair or replacement costs are paid for the components that have failed
  • Fixed premium/cover up to five years: the cover and premium will remain unchanged regardless of the number of claims
  • Claims settled in house without the need of a loss adjuster
  • Renewable

General Eligibility for Cover

  • The age of the machine must not exceed 20 years at expiry
  • Machines over GBP400,000, €500,000 and US$600,000 by agreement
  • Eligible machinery must be fixed and installed at premises owned or occupied by the insured customer
  • Ineligible machinery: pre-press and printing equipment
  • Ineligible trades/premises: contract/building sites, quarries, mines, waste transfer/disposal sites, night clubs, bars, public houses, fast food takeaways, amusement parks, leisure centres, gymnasiums and where machinery can be operated by the general public

The Period for which Machinery is Covered

1. (a) For new machines
The   cover   for   new   machines   under   the   electrical   and   mechanical breakdown section of the Certificate begins when the manufacturer’s warranty finishes.
(b) For used and reconditioned machines
The cover for used and reconditioned machines in the electrical and mechanical section and in the accidental damage section of the Certificate begins at the acceptance date (a waiting period of 60 days may apply). In the event there is a period of the manufacturer’s warranty remaining at the acceptance date, the cover under the electrical and mechanical breakdown section shall begin at the expiry of the manufacturer’s warranty period.
2. When the maximum indemnity amount payable under the Certificate has been paid.
3. Until the date on which the insured sells the machinery or ceases to trade.

In the event of a total loss
If the machinery was new when the warranty began, in the event of a total loss, the insurer will pay the new replacement value of the machine including the cost of dismantling less the value of salvaged parts.
If the machinery was not new when the warranty began, in the event of a total loss, the insurer will pay the market value at the time of the loss and the cost of dismantling less the value of salvaged parts.

Principle Exclusions

  • The policy excess
  • Consequential loss
  • Machines hired or loaned out
  • Theft or attempted theft
  • Loss or damage caused by fire, lightning, aircraft, explosion or accidental damage
  • Wear and tear, gradual deterioration, rust or corrosion, intentional overloading, testing or commissioning
  • Loss or damage covered under a manufacturer’s warranty or another party’s warranty or guarantee
  • Any electrical or mechanical breakdowns:
    •  during the manufacturer’s warranty period
    •  for a period of 60 days from the date the warranty begins if the warranty purchased is not an extension of an existing warranty
    • for new machines, for a period of 7 days from the date of commissioning
  • Any damage caused by operator error:
    • for used machines for a period of 14 days from the date the warranty begins, if the warranty purchased is not an extension of an existing warranty.
  • Consumable items are not covered
  • Any damage caused to the machine by continuing to use it when it is broken
  • Any damage or breakdown caused by a poor working environment
  • Failure of the public electricity supply and from surges and variations in the electrical supply
  • Electrical and mechanical breakdowns if the equipment has not been regularly serviced or maintained
  • Any lasers, LEDs or other light sources outside their deemed useful life
  • Serial loss defects clause

For more information please contact us.