This policy protects the machinery insured against any unforeseen and sudden physical loss of or damage.
Causes of the loss will include:
» Bad workmanship
» Faulty design of the machine
» Shortage of water in boilers
» Short-circuiting etc
Machinery to be covered under this policy will include factory production machinery, workshop machinery, generators, industrial lathes, drills, compressors etc. Costs of freight and increased costs incurred as the result of such damage can also be covered and recovered under the policy.