Does your manufacturing insurance cover a machine breakdown and the downtime?

Your equipment may be listed on the property policy, but that does not mean every reason it stops working is covered. When you compare a manufacturing renewal, ask about the cause of the damage, the cost to repair or replace the machine and the income affected while production is interrupted.

Equipment breakdown is a coverage area worth reviewing separately. Depending on the policy, it can address specified mechanical or electrical failures that an ordinary property proposal may treat differently. The name of the package is not enough to establish what is included.

Call BIG at (612) 712-6407 or request a manufacturing insurance review with your renewal and current policies.

Start with what caused the machine to stop

A machine damaged in a fire presents a different coverage question from a machine that suffers an internal failure. A worn component needing routine replacement presents another. The policy's definitions, covered causes and exclusions determine how those situations are treated.

Have the agent identify the equipment-breakdown provision in each proposal and explain which equipment it applies to. Include the machinery that drives production as well as supporting equipment the operation relies on. A modest component can matter a great deal if production depends on it.

Equipment-breakdown coverage should not be treated as a maintenance agreement. The review needs to distinguish an insured event from upkeep and predictable wear.

Review the repair bill and the income loss together

Repairing a machine and replacing the income lost during the interruption are separate parts of the discussion. Ask whether business income or extra expense is included for the breakdown event being considered, and what limits, waiting periods or deductibles apply.

Do not assume the business-income wording elsewhere in the property policy automatically applies to every equipment failure. The covered cause and the relevant provisions need to line up.

For example, a fictional machine shop loses the use of a key production machine. Replacing a part may restore the equipment, but the interruption could also create questions about unfinished orders, continuing expenses and temporary alternatives. Those questions help explain the exposure; they do not establish that every resulting cost is insured.

Explain how production would continue

Tell us whether another machine can do the work, whether you could subcontract part of the process and how quickly replacement equipment or parts could be obtained. Include any installation or specialist work needed to put the machine back into service.

That operating picture helps make the coverage discussion useful. Ask how the proposal treats temporary repairs, expediting expenses or other costs you might incur, rather than assuming they sit inside the main equipment limit.

You can also raise dependencies outside your premises, such as a utility interruption. Coverage for those events needs its own review; it should not be inferred from the equipment-breakdown label.

Compare the proposals before choosing the lower price

Give each proposal the same equipment information and values. Compare the equipment definition, covered events, valuation, deductibles and income terms alongside the premium. If an option costs less, you should be able to see whether the difference comes from price, coverage or both.

BIG can review the current policy and available alternatives for your manufacturing operation. Send the renewal date, major equipment list, values and a short explanation of the production steps you depend on most. Our manufacturing renewal guide covers the wider policy comparison.

Availability and terms depend on the operation, underwriting and the policy. Request a review or call (612) 712-6407 to discuss what is included in your renewal.