Separate physical damage and lost earnings
Technical insurance can cover agreed machinery damage. An additional machinery business-interruption section can cover agreed financial consequences of an insured physical loss.
Not every stoppage is covered
Normal wear, maintenance, lack of orders or a stoppage without an insured trigger are not automatically covered. Check exclusions, deductibles, limits and indemnity period.
Replacement may take time
Lead times, installation, testing, alternative production and reserve capacity affect financial consequences. The indemnity period should match realistic recovery.
Which businesses should review this?
Manufacturers, machine builders, CNC businesses and woodworking firms dependent on particular equipment should assess these risks.
Two examples from production
Unexpected machinery damage
A production unit is suddenly damaged while operating. The cause, insured equipment and selected cover must be established. Repair costs and the financial effects of downtime are assessed separately.
A long wait for spare parts
After an insured loss, a missing spare part delays the restart. Check whether the agreed business interruption cover and indemnity period are sufficient and which additional alternative-production costs are insured.
Fictional, simplified examples, not confirmations of cover. The cause of loss, policy and insurance terms determine coverage.
