Machinery breakdown insurance helps protect Australian businesses from the repair costs, lost income and operational disruption caused by sudden and accidental mechanical or electrical failure.
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Machinery breakdown insurance is designed for businesses that rely on mechanical, electrical, electronic or pressure equipment. It can complement commercial property insurance by responding to sudden internal breakdown that may not be caused by an insured external event.
Cover may respond to sudden and accidental internal mechanical, electrical or electronic damage to insured equipment, subject to the policy wording.
Helps with reasonable repair or replacement costs for insured machinery, including parts and labour, within the applicable limits.
Optional cover may help address lost income, loss of profits or additional expenses when a breakdown interrupts your business.
Cover may be arranged for temporary equipment hire, urgent freight, overtime, temporary repairs and other expediting costs.
Businesses holding refrigerated, chilled or temperature-sensitive goods can consider cover for stock deterioration following an insured breakdown.
Depending on the policy, cover may extend to electronic equipment, control systems, data restoration and related operational costs.
We help identify the equipment and breakdown exposures most important to your business.
We compare available cover, limits, excesses and extensions to suit your operations.
Machinery breakdown can be considered alongside property, business interruption and liability cover.
When equipment fails, our team helps you understand the policy response and next steps.
ABS Insurance Brokers assists businesses across Australia with practical insurance advice.
Speak with ABS Insurance Brokers about machinery breakdown insurance tailored to your equipment, industry and operational needs.
Machinery breakdown insurance can help cover sudden and accidental internal mechanical, electrical or electronic breakdown of insured equipment. Depending on the policy, it may include repair or replacement costs, temporary hire, expediting expenses, business interruption and deterioration of stock. Terms, limits, excesses and exclusions apply.
Cover can be considered for equipment such as air-conditioning systems, refrigeration and cool rooms, pumps, compressors, generators, boilers, pressure vessels, production machinery, printing equipment, conveyors, switchboards, servers and electronic control systems. The equipment must be acceptable to the insurer and correctly described or scheduled where required.
Not usually. Standard commercial property insurance generally responds to insured external events such as fire, storm or impact, while machinery breakdown insurance is designed for sudden internal mechanical or electrical failure. The policies can work together, but the correct response depends on the cause of loss and policy wording.
Some policies can include business interruption, loss of income, increased cost of working, temporary hire and deterioration of refrigerated or temperature-sensitive stock. These extensions are not automatic and must be selected, with appropriate sums insured and indemnity periods.
We generally need details of the machinery, manufacturer, model, age, replacement value, location, use, maintenance arrangements, prior losses and desired business interruption or stock-deterioration extensions. Contact ABS for a tailored discussion.
