In this article
Key points
- A fixed annual premium turns unpredictable breakdowns and damage into a cost you can plan for.
- Machinery insurance covers installed machines against accidents and internal operational damage.
- Machinery casco insurance covers mobile working machines against damage caused by external forces.
- Exclusions (wear and tear, maintenance), insured value and territorial scope need to be checked.
How do you protect your industrial and commercial machinery? Machinery insurance and machinery casco insurance meet different needs.
This article sets out their advantages, the risks covered, the additional cover available and the key clauses, to help you choose the right policy for your company.
Why insure your machinery?
- Protect the capital invested: a fixed annual premium turns unpredictable costs (damage, breakdowns, accidents) into an expense you can plan for.
- Keep the business running: an unexpected machine stoppage hits productivity and turnover; suitable cover, possibly including business interruption, protects production capacity.
- Broad cover: technical hazards, human error, fire and natural hazards.
- Tailored cover: the insurance can be extended to individual machines of your choice.
Machinery insurance
Machinery insurance is one of the engineering insurance lines. It protects fixed or mobile industrial and commercial machinery against a wide range of risks, both external (external force) and internal (operational damage).
What is insured
- installed, ready-to-use machines, usually fixed or difficult to move: industrial plant, medical equipment, production robots, etc.;
- if the policy provides for it, mobile machines (site excavators), CNC machine tools, printing presses or measuring equipment.
External force ("accident")
Collision, overturning, violent impact, landslides, falling rocks, subsidence, and short circuits or power surges with an external cause.
Internal operational damage ("breakdown")
Operating errors, negligence or lack of skill, internal short circuits or power surges, overloading, failure of measuring, control or safety devices.
Additional cover
- fire, natural hazards and theft;
- additional clearance costs;
- business interruption and additional costs, covering the costs and loss of income caused by a machine stoppage;
- current value or increased market value: in the event of a total loss, compensation depends on the terms of the contract.
Machinery casco insurance
Machinery casco is also an engineering insurance line, but it mainly concerns mobile and self-propelled working machines used in high-risk settings: building sites, farms and municipal services. It covers damage caused by external force: collision, overturning, short circuits from external causes, landslides, falling rocks, subsidence and handling errors.
It offers the same additional cover as machinery insurance.
Machinery insurance or machinery casco?
Table 1| Criterion | Machinery insurance | Machinery casco |
|---|---|---|
| What is insured | Installed machines, fixed or difficult to move; mobile machines if provided for | Mobile and self-propelled working machines |
| Settings | Industry, healthcare, manufacturing | Building sites, agriculture, municipal services |
| External force | Covered | Covered |
| Internal operational damage | Covered | Not covered |
| Additional cover | Fire, natural hazards, theft, clearance, business interruption | The same |
The advantages for companies
- Tailored protection, according to the machine and the sector: construction, agriculture, industry, logistics.
- Secured financing: these policies are often required for leasing or financing, and also protect suppliers and lenders.
- Simpler claims handling: insured damage is covered regardless of liability, which reduces disputes and downtime.
- Optimised premiums: a risk analysis adjusts the cover and avoids unnecessary costs.
Points to check
Five tips for choosing your cover
- Analyse your machinery: type, value, frequency of use.
- Assess your exposure to risk: building sites, industrial environments, seasonal work.
- Choose the right solution: is basic machinery casco enough, or do you need machinery insurance to cover internal damage too?
- Customise your cover: fire, theft, business interruption, replacement value, etc.
- Consult a specialist for a tailored quote and optimised contract terms.
Conclusion
These policies are strategic tools for protecting your investments in machinery and equipment.
Ivano Piffaretti, Assidu
Machinery insurance and machinery casco safeguard the company’s business continuity and financial stability. In summary:
- identify your needs clearly: material damage, business interruption, fire, theft;
- set the insured value correctly: current value or replacement value;
- plan regular maintenance to limit exclusions linked to wear and tear or negligence.
With a specialist adviser, you can define personalised cover with optimised premiums, in line with Swiss insurance practice.
Member of Management · Head of Property and Casualty Insurance Team · Senior Insurance and Pension Consultant
