- 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 cause s such as short circuit
- Shortage of water in boilers
- Storm, frost, drifting ice
All types of machinery, plant, mechanical equipment and apparatus may be covered under machinery insurance.
If possible, all the machines of a plant or workshop or of a separate plant section should be included in the insurance in order to ensure that the risk is adequately balanced.
Only those items having a short service life compared with the entire plant are normally excluded from machinery insurance, these are mainly:
- All types of interchangeable tools
- Belts, chains, ropes, sieves, engraved cylinders, stamps, dies
- Parts made of glass, ceramic or wood, rubber tyres
- Operating media of any kind such as fuel, gas, refrigerants, catalysts, liquids, lubricants (oil in transformers and circuit breakers is, however, included since it is not only a coolant but also serves as an insulation agent)
The few individual exclusions from the cover mainly comprise loss or damage caused by:
- Fire, lightning stroke, chemical explosion, burglary and theft, i.e. perils covered or coverable under other policies such as collapse of building
- Inundation, flood, earthquake, subsidence, landslide, impact of landborne, waterborne or airborne craft
- War or warlike operations, civil commotion of any kind as well as acts on the part of strikers and lockedout persons
- Willful acts or gross negligence on the part of the insured or of his representatives
- Faults or defects existing at the time of commencement of the insurance which ought to have been or were known to the insured
- Faults or defects for which the supplier is responsible either by law or under contract (losses covered by warranty)
- Nuclear reaction, nuclear radiation or radioactive contamination
- Also excluded is consequential loss or liability of any kind or description and wear and tear as a consequence of ordinary use or operation as well as cavitation, erosion, corrosion (e.g. rust) or boiler scale (this exclusion relates, however, only to the parts immediately affected).
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