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Machinery & Equipment Breakdown Insurance

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Get Singapore's best Machinery & Equipment Breakdown Insurance. Protects your business against expensive repairs & replacements, and helps you pay business expenses while your machines aren't working.

The global average cost of equipment downtime is $8,000/hour for SMEs. When your equipment inevitably breaks down and you have to get it fixed, how would you like to pay those expensive bills? Pay out of your pocket, or have a policy that’ll pay the costs for you?

When you consider how important your equipment is to your business, it instantly makes perfect sense to invest a small amount to receive 24/7 comprehensive protection. If you want to prevent your business from losing money to inevitable machine disruptions, then we recommend you strongly consider this type of protection.

What does Machinery & Equipment Breakdown Insurance cover?

There are five categories of equipment that equipment breakdown insurance typically covers:

Mechanical, which includes motors, engines, generators, elevators, water pumps, elevators, escalators, and specialized production and manufacturing equipment.
Electrical, which includes transformers, electrical panels and cables.
Computers and communications, which includes computer systems, phone systems, voice mail systems, security systems and fire alarm systems.
Air conditioners and refrigeration systems
Boilers and pressure equipment

This coverage doesn’t require that the equipment breakdown resulted from a covered event in a property insurance policy, such as a fire. Coverage can kick in after an equipment malfunction.

Machinery and Equipment Breakdown Insurance also covers your lost business income while your machines are damaged.

Do I need Machinery & Equipment Breakdown Insurance?

If you rely on on machines or equipment to run your business, then you certainly need this coverage. Machinery and Equipment Breakdown Insurance is so helpful because it not only pays for equipment repair, but it also provides compensation for lost business income while your machines can’t function.

Many business owners may have the misconception that their equipment damage risk is fully covered by purchasing a Commercial Property policy. However, Commercial Property insurance covers damages caused by covered external cause, such as a fire. On the other hand, a Machinery and Equipment Breakdown Insurance covers damages caused by covered internal forces, such as electrical malfunctions, mechanical breakdowns, motor burnout, operator errors, & more.

What kinds of companies will commonly carry Machinery and Breakdown Insurance?

Here are common examples of who needs equipment breakdown coverage:

A manufacturer uses equipment to produce products.
A small print shop needs copiers to work.
A restaurant needs the refrigerators to remain fully functional.
An IT company relies on servers and computers.
A mechanic requires hydraulic lift to work on cars.

Machinery & Equipment Breakdown Insurance vs Commercial Property Insurance

Machinery and Equipment Breakdown Insurance	Commercial Property Insurance
Covers breakdown of machinery and equipment due to internal factors. Examples of internal factors: Loose parts Foreign objects causing damage Servicing errors later cause machine malfunction Improper use of machines, causing damage Careless use/lack of skill while operating machines, causing damage Poor manufacturing that causes faulty equipment Poor erection/installation process that causes faulty equipment …and more	Covers physical damage to machinery and equipment caused by external factors. Examples of external factors: Fire Explosions Water damage Flood Burglary Vandalism Collapsed roof/walls Lightning …and more
Covers explosions/implosions of boilers, vacuums, centrifuges, and other pressurised equipment, if caused by the internal pressure of the equipment itself Covers damage of centrifuges, if caused by the rotating force of the equipment	Does not cover explosions/implosions of boilers, vaccums, and other pressurised equipment, if caused by the internal pressure of the equipment itself Does not cover damage of centrifuges, if caused by the rotating force of the equipment
Covers lost business income while machinery is damaged	Does not cover lost business income while machinery is being repaired

What are some claims examples?

Claim Example 1: Manufacturer’s equipment breaks down

Claim Example 2: F&B kitchen equipment breaks down

Let’s say you’re operating a restaurant. One day, your commercial fridges suddenly break down. your business will suffer if electrical power is cut off due to a power surge. Loss of electricity would mean that you cannot process online orders, and the restaurant would not be able to prepare, cook, serve and sell food. Prolong power cut off can also cause food wastage due to spoilage.

In this example, machinery and equipment breakdown insurance may help pay for:

Business income you lost while the power was out (if you are not already covered under business interruption insurance)
The cost to repair your walk-in refrigerator and to replace a computer that were damaged by a power surge that occurred when the electricity was restored
Costs associated with the time and labour to repair and replace your damaged equipment
The cost to replace food inventories that has been spoilt due to power cut off

Claim Example 3: Construction company cranes break down

How much does Machinery and Breakdown Insurance cost?

Machinery and Breakdown policies start from just $9/month. They are highly affordable, yet provide excellent protection against breakdowns for equipment that’s vital to your business.

With Provide, you can save up to 25% or more on your premiums. Our digital operating model creates lower overheads, and we pass those cost savings back to you.