{"id":26696,"date":"2023-06-10T14:03:27","date_gmt":"2023-06-10T14:03:27","guid":{"rendered":"https:\/\/insuropedia.in?p=26696"},"modified":"2025-07-16T06:43:45","modified_gmt":"2025-07-16T06:43:45","slug":"importance-of-machinery-breakdown-insurance-mbd-and-its-coverage-under-property-insurance","status":"publish","type":"post","link":"https:\/\/securenow.in\/insuropedia\/importance-of-machinery-breakdown-insurance-mbd-and-its-coverage-under-property-insurance\/","title":{"rendered":"Importance of Machinery Breakdown Insurance (MBD) and its coverage under property insurance?"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p><span style=\"font-weight: 400;\">The smooth functioning of machinery and equipment is one of the major aspects of a successful business.\u00a0 and The breakdown of machinery and physical damage to equipment can disrupt the business operation completely and the lost productivity can pose a huge loss. However, in a big-scale business like manufacturing, such eventualities are unavoidable despite regular monitoring and preventive measures. This is where machinery breakdown insurance (MBD) or <\/span><a href=\"https:\/\/securenow.in\/property-insurance\"><span style=\"font-weight: 400;\">property insurance<\/span><\/a><span style=\"font-weight: 400;\"> covering machinery breakdown plays a crucial role by giving financial protection to businesses against losses.\u00a0<\/span><\/p>\n<h2><b>What is machinery breakdown insurance?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Machinery breakdown insurance is a type of insurance that factories and industries can avail of for financial security against losses arising from the accidental breakdown of machinery and equipment. The coverage includes the cost of repair, the cost of replacement of damaged machinery or parts along with the cover for some additional risks related to the eventualities. The MBD insurance offers coverage for the following major risks of breakdown.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Breakdown of machinery or equipment due to short-circuit, faulty material, or any mechanical or electrical breakdowns.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Breakdowns due to a lack of operational skills and the improper management of machinery.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Abnormal operating conditions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Collision, falling, impact, etc.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Disruption of the bursting of hydraulic cylinders, compressors, or turbines due to internal pressure, etc.\u00a0<\/span><\/li>\n<\/ul>\n<h2><b>Importance of machinery breakdown insurance:<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Be it a standalone MBD insurance or <\/span><a href=\"https:\/\/securenow.in\/property-insurance\"><span style=\"font-weight: 400;\">property insurance<\/span><\/a><span style=\"font-weight: 400;\">, it is important to have coverage for losses arising from machinery breakdown for the following important reasons:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The cost of repair and replacement of parts of machinery is a high expenditure for the business. Sudden and unforeseen physical damage to machinery can get the business operation to stand still. Hence, it is important to have the financial cushion to repair and replace parts at the soonest as crucial to keep the business running smoothly.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The machinery breakdown disrupts the business and suffers revenue losses due to lost productivity. The MBD insurance policy provides coverage for some of these income losses related to the accident.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Specifically, the food industry that involves perishable goods requires this coverage to overcome the direct losses due to the breakdown.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Though you can get extensive coverage by opting for a standalone MBD insurance policy, machinery breakdown coverage is also available under the <\/span><a href=\"https:\/\/securenow.in\/property-insurance\"><span style=\"font-weight: 400;\">commercial property insurance policy<\/span><\/a><span style=\"font-weight: 400;\"> that provides broader coverage to businesses.\u00a0<\/span><\/p>\n<h2><b>Machinery breakdown insurance cover under <\/b><a href=\"https:\/\/securenow.in\/property-insurance\"><b>commercial property insurance<\/b><\/a><b>:<\/b><\/h2>\n<p><a href=\"https:\/\/securenow.in\/property-insurance\"><span style=\"font-weight: 400;\">Commercial property insurance<\/span><\/a><span style=\"font-weight: 400;\"> is comprehensive insurance coverage for factories and industries to avail financial protection against all the damages or risks caused to their property and its content. <\/span><a href=\"https:\/\/securenow.in\/property-insurance\"><span style=\"font-weight: 400;\">Property insurance<\/span><\/a><span style=\"font-weight: 400;\"> provides financial security to the property and its content (that includes machinery and equipment) against accidental damages, theft, fire and other natural calamities. The <\/span><a href=\"https:\/\/securenow.in\/property-insurance\"><span style=\"font-weight: 400;\">commercial property insurance policy<\/span><\/a><span style=\"font-weight: 400;\"> is flexible and can be personalised as per the nature of the business. It is crucial for businesses to <\/span><a href=\"https:\/\/securenow.in\/property-insurance\"><span style=\"font-weight: 400;\">buy commercial property insurance<\/span><\/a><span style=\"font-weight: 400;\"> to safeguard themselves financially from the various types of risks associated with the property and the machinery in it. You can buy <\/span><a href=\"https:\/\/securenow.in\/property-insurance\"><span style=\"font-weight: 400;\">online property insurance<\/span><\/a><span style=\"font-weight: 400;\"> without any hassles.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/securenow.in\/property-insurance\"><span style=\"font-weight: 400;\">property insurance plan<\/span><\/a><span style=\"font-weight: 400;\"> provides coverage for both structures as well as machinery and equipment in a factory and manufacturing plant. Machinery breakdown coverage under <\/span><a href=\"https:\/\/securenow.in\/property-insurance\"><span style=\"font-weight: 400;\">property insurance<\/span><\/a><span style=\"font-weight: 400;\"> helps businesses to recoup financial losses related to electrical and mechanical breakdowns. Being uninsured can seriously impact business operations and lead to significant erosion of business capital. It is crucial to incur this essential cost to <\/span><a href=\"https:\/\/securenow.in\/property-insurance\"><span style=\"font-weight: 400;\">buy property insurance<\/span><\/a><span style=\"font-weight: 400;\"> for the businesses to have all-risk protection for the business premise and its content.<\/span><\/p>\n<h4><b>About The Author<\/b><\/h4>\n<p><strong>Shivani<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">MBA Insurance and Risk<\/span><\/p>\n<p><span style=\"font-weight: 400;\">She has a passion for property insurance and a wealth of experience in the field, Shivani has been a valuable contributor to SecureNow for the past six years. As a seasoned writer, they specialize in crafting insightful articles and engaging blogs that educate and inform readers about the intricacies of property insurance. <\/span><span style=\"font-weight: 400;\">She brings a unique blend of expertise and practical knowledge to their writing, drawing from her extensive background in the insurance industry. Having worked in various capacities within the sector, she deeply understands the challenges and opportunities facing property owners and insurers alike.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The smooth functioning of machinery and equipment is one of the major aspects of a successful business.\u00a0 and The breakdown of machinery and physical damage to equipment can disrupt the business operation completely and the lost productivity can pose a huge loss. However, in a big-scale business like manufacturing, such eventualities are unavoidable despite regular [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_lmt_disableupdate":"no","_lmt_disable":"no","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[988,6],"tags":[45,193,1568,1676],"class_list":["post-26696","post","type-post","status-publish","format-standard","hentry","category-importance-property-insurance","category-property-insurance","tag-fire-insurance","tag-property-insurance","tag-machinery-breakdown-insurance","tag-property-equipment-insurance"],"acf":[],"modified_by":"SecureNow","_links":{"self":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/26696","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/comments?post=26696"}],"version-history":[{"count":5,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/26696\/revisions"}],"predecessor-version":[{"id":30727,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/posts\/26696\/revisions\/30727"}],"wp:attachment":[{"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/media?parent=26696"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/categories?post=26696"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/securenow.in\/insuropedia\/wp-json\/wp\/v2\/tags?post=26696"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}