The need for machinery and equipment insurance stems from the need to effectively protect expensive machinery, mechanical equipment and installations. Even high-quality, well-maintained industrial machinery and equipment are subject to breakdowns and accidents.
Insurance claim events can arise from unforeseen and sudden damage or total loss as a result of:
A policy may cover any machine, apparatus, mechanical equipment or installation. However, it usually covers:
Before being insured, machinery must be tested and found operable and compliant with technical norms.
Such insurance does not cover items or parts that are subject to depreciation and amortization to a high degree, are subject to periodic replacement, or whose service life is considerably lower than the machine or equipment with which they are associated due to their operation and/or the nature of the material used in them.
AIG has more than 90 years of experience in the insurance industry, the most extensive international network and unique experience in loss settlement and risk engineering.