Provision of Cover
This policy provides cover against breakdown for plant and equipment 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
  • Cover for the powertrain and hydraulics

If the customer’s plant breaks down, the insurer will indemnity for the reasonable costs to put it back in working order. This means the costs of labour, parts and reasonable costs of travel, including any overnight stay required spent by the insured to repair the machine. The insurer will pay for the cost of diagnosis providing it is not speculative. The insurer will also pay for the costs of replacement oils and fluids. Should it be necessary to return the plant to base, that cost is covered under the warranty. Indemnity will also include the expediting costs to ship parts from overseas if this is the only way to repair the customer’s machine.


  • 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
  • Cover will apply up to the number of hours and years arranged, maximum five years / 10,000 hours.
  • Claims settled in house without the need of a loss adjuster
  • Renewable

General Eligibility for Cover

  • The age of the machine must not exceed 8 years or 8,000 hours at commencement
  • Machines over GBP400,000, €500,000 and US$600,000 by agreement
  • Eligible machinery: includes excavators, wheel loaders, shovels, skid loaders, compressors, generators, powered access platforms and agricultural equipment

The Period for which the Plant is covered
1. (a) For new machines.
The cover for new machines under the electrical and mechanical breakdown section of the policy begins after the manufacturer’s warranty finishes.
(b) For used and reconditioned machines.
The cover for used and reconditioned machines in the policy 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 policy has been paid.
3. Until the date on which the Plant is sold or the insured ceases to trade.

How long can the warranty be provided for?
New equipment warranties are up to 36 months and 6,000 hours and in certain cases for large plant and certain applications up to 60 months and 10,000 hours from the date of commissioning.
Second user warranty is immediately available on most plant up to 48 months and 8,000 hours old. For any older plant more detailed information may be required.

Limit of indemnity
There is no limit to the number of payments that can be made save that the total amount that can be recovered over the life of the warranty cannot under any circumstances exceed 50% of the invoice price for new machines and 50% of the market value at the time of resale for second user machines. In the event the warranty is taken out after the machine has been purchased, the market value for warranty purposes will be the value at that date.
In addition, for new equipment no single breakdown payment under the warranty under any circumstances can exceed 25% of the invoice value and for second user equipment, 25% of the market value at the time of resale.

In the event of a total loss
An item of machinery will be considered a total loss if the cost of repair exceeds the market value at the time of the breakdown. The insurer will pay the market value at the time of the breakdown and any cost of dismantling the damaged machinery less any salvaged parts up to the limit of protection.

Transfer of warranty
The warranty can be transferred to the new owners automatically if the extended warranty is claims free.

Principle Exclusions

  • The policy excess
  • Consequential loss
  • 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 breakdowns:
    • For used plant: any breakdown within the first 14 days
    • For new plant: any mechanical breakdowns during the manufacturer’s warranty period
  • Any mechanical breakdowns which are gradual in nature and therefore not sudden and unforeseen
  • Non wearing parts that are part of the machine’s structure. For example, ground engaging gear and the boom
  • Any accessory being used with the machine which was not originally supplied with the machine and a payment being made for it. For example, an automatic greaser
  • Any breakdowns on plant which has not been serviced and maintained in accordance with the manufacturer’s instructions
  • No wear items are covered
  • Serial loss defects clause

For more information please contact us.