Insurance of machinery and equipment
There is a significant difference between the production maschinery used in industry and the equipment used in agriculture in terms of insurance. While the former category has a higher proportion of fixed installed maschinery, the latter one cannot be defined even as being located within the insured site for the most of the year. This is a very important condition, since according to the logic of property insurance, the insurance protection basically covers the area of the insured sites, ie in the absence of a special clausula the machines performing their work outside of the insured site are not protected by the contract.
You should also pay your attention to the fact that exactly due to the above work schedule insurance extensions against burglary and robbery are a sort of lost money if equipment is located either not on insured site or only very rarely inside a lockable building. In the absence of a separate agreement, the insurer will not indemnify in the event of theft of the machinery, so it is necessary to deal with this special circumstance that must be taken into account as a specific feature of the sector similar to the cases of self-ignition.
It is also worth checking the practice showing which equipment is a prime aim for risks (for example, irrigation equipment is a popular target for thieves, but due to its considerable size a target is mainly not the whole machine, but spare parts of it like wheels and wires) and also which particular solutions to be developed within the frames of the concluded agreements.
We offer our partners with several sites to reallocate their stocks and especially their machines under the continuous insurance protection.
Today’s equipment already has a large number of electronic accessories, support devices, movable touch screen surfaces, GPS to be insured whether it is a system that allows the control and use of a bridge scale, or a tablet of combine harverster that requires insurance against the widest possible spectrum of damage (such as external mechanical damage or overvoltage caused by a lightning strike).
Finally, it is also worth noting that, contrary to the widespread practice of property insurance contracts, in the case of machine breakdown insurance, the subject of insurance is not only an event of damage itself but also a damage caused by the operator’s error (unless, of course, there is no any issue of gross negligence or willful misconduct).