But in addition to the insurance for the machine(s), we would also like to draw your attention to the fact that damage to one of your machines cannot and must not jeopardize your business continuity. Machinery Breakage insurance can offer a solution.

Machinery Breakage insurance is property damage insurance. It is a supplement to the fire insurance that guarantees the objects described in the policy against unforeseen and sudden damage.

A machine is an important and often very vulnerable product within a company. Sudden failure or unforeseen damage to one of the machines can cause production to come to a complete or partial standstill, with potentially major financial consequences. In other words, the machine park often plays a very important role in your business continuity.

Did you know that in the event of a breakage, the damage amount consists of an average of 30% of material damage and 70% of trading loss?

A machine breakdown hangs over every production company. Both through an internal failure (assembly error, construction error, overheating or jamming of the machine,…) or by an external cause (negligence, inexperience, intent, influence of electric current,…).

As an entrepreneur, you have every interest in being operational again as soon as possible after a defect. Unfortunately, the current crisis means that certain spare parts are less and less often in stock. This causes a significant delay in restarting or may even lead to a temporary halt in your activities.

A temporary cessation of activities can have far-reaching consequences:

• Loss of customers and/or market share
• Penalty clauses
• Reputational damage
• Dismissal of employees
• …

In addition to the Machine Breakage insurance, you can optionally take out the Machine Breakage Business Damage insurance as well.

In the event of a machine defect, you often suffer material damage on the one hand, but you also sometimes suffer a loss of turnover almost immediately. The downtime of a machine and the time it takes to replace or repair the machine can mean a significant financial setback for your company. The fixed costs simply continue. The Machine Breakage Business Damage insurance therefore ensures that the continuity of your company is safeguarded despite the temporary failure of your machines. With this extra insurance, the trading loss as a result of machine breakdown is fully compensated.

Checklist:

When do you need Machinery Breakdown Insurance?

• If you depend on 1 specific machine that can cause possible business damage by endangering the continuity of the company.
• If you want to co-insure business damage caused by operating errors by your staff.
• If you want a very comprehensive business interruption insurance.

The conditions and coverage depend on the type of business you run. Thanks to our knowledge and experience with machinery and installations, the employees at D'hondt Insurance are aware of the technical risks as well as the associated trading losses.