24h Assistance
JORI
Contact
Glossary
Business risk

Machinery breakdown

Cover that protects against sudden internal damage to equipment due to mechanical, electrical, or operational causes, without an external claim.

In practice

It is the cover that the damage policy does not include by default and the one most needed in equipment-intensive industries. It is usually valued as new and excludes wear and tear, which is precisely the boundary that the expert discusses.

Where it is addressed

This term is covered in Riesgos patrimoniales and applies when taking out Daños Materiales.

Related terms

All-risk material damagePolicy structure that covers any accidental damage except that expressly excluded.Replacement value as newCost of replacing an asset with an equivalent one without deducting depreciation for use or age.Loss of profitsGuarantee that compensates the margin the company fails to obtain while it cannot operate due to a covered material damage.First demand guaranteeGuarantee that obliges the insurer to pay upon the simple request of the beneficiary, without discussing the underlying relationship.General averageProportional distribution between ship and shippers of the sacrifice or extraordinary expense made to save the maritime expedition.Bonus-malusSystem that adjusts the renewal premium based on the claims recorded in previous years.
PreviousFirst demand guaranteeNextGeneral average

Would you like to tell us about your case?

Let's talk