Machinery Breakdown Insurance provides a security cover to the machines used by factories and industries. This insurance covers accidental breakdown and physical damage of the machinery, the cost of repairs or replacement of the damaged machine parts.

The insurance policy covers the loss due to sudden and accidental machinery damage emerging from both internal and external causes.

Machinery breakdown insurance can be used for machinery breakdown due to electrical failure, faulty material, and faulty casting that manifest after the warranty period due to electrical and mechanical breakdowns; nonstandard operating circumstances of the machine; falling, crash and conflict resulting in collapse, mindlessness and lack of operation skills; turbines bursting, compressors, hydraulic cylinders or other apparatus which is subjected to centrifugal force or internal pressure; harm or loss due to commencement of fire from inside the machinery is also included which is generally excluded from the standard fire protection policy, etc.

The protection is offered for machines both in working and in rest condition. Some other conditions are when dismantled or moved or re-assembled for cleaning, inspection or mend.