Machinery insurance policy covers almost unforeseen and sudden physical loss of or damage to the insured items, necessitating their repair or replacement.
Loss or damage covered under machinery insurance is mainly due to one of the following causes:
• Faulty design (calculations, plans, drawings and specifications)
• Faults at workshop or in erection
• Defects in casting and material
• Faulty operation, lack of skill, negligence, malicious acts
• Tearing apart on account of centrifugal force
• Physical explosion, flue gas explosion in boilers
• Electrical causes such as short circuit
• Shortage of water in boilers