Manufacturing Industry.

Machinery Breakdown

The standard machinery breakdown policy covers sudden and unforeseen physical loss or damage to the insured’s machines while at work or at rest or during cleaning, inspection, overhauling or removal to another position in the premises necessitating repair or replacement as a result of any cause not excluded by the policy. Cover includes loss or damage resulting from mechanical or electrical breakdown. The machinery covered is required to have a service/maintenance contract. The cover may also provide compensation for reduction in turnover or increase in cost of production as a result of any admitted claim under machinery breakdown.

The policy covers factory production machinery, workshop machinery, generators, industrial lathes, drills, compressors, boilers with auxiliaries, electrical equipment, alternators, mechanical plants including engines, turbines, pumps, lifting equipment including cranes and lifts. The insured reviews regularly the sum insured to represent the new replacement value which includes installation costs and customs dues, freight charges, cost of repair and expenses for employment of a specialist.

Deterioration of Stock Insurance

The insurance is issued against deterioration of goods in cold storage due to breakdown of refrigerating machinery. This insurance compliments Machinery Breakdown insurance and is given on accommodation basis.

For cover to be provided, the machinery or equipment where the stock is held has to be insured against machinery breakdown.  This insurance is suitable for owners of cold-storage houses, users of cold storage houses, manufacturing or processing plants of agricultural products, meat and fish processing industries and or chemical and pharmaceutical industries.

The policy covers rise or fall in cooling temperatures, unforeseen and sudden escape of refrigerant into the cold storage rooms and or under-controlled storage or incorrect composition of atmosphere resulting in any form of material damage to the refrigeration plant. It can be extended to cover deterioration of stock due to failure of public power supply as long as the position regarding public and backup supplies is found to be satisfactory.

Boiler & Pressure Vessels Insurance

This insurance is for machinery and plant that operate under steam, air or other pressure such as boilers, economizers, super heaters, steam and feed pipes, heating & supply installations and miscellaneous pressure vessels and containers. Such machinery would not be adequately insured under machinery breakdown insurance because machinery breakdown policy excludes explosion of any kind.

This policy covers boiler and pressure vessels, which usually face the risk of explosion or collapse. The policy seeks to indemnify the insured against damage to the insured’s boiler and or other pressure plant, damage to surrounding property of the insured, legal liability to third parties on account of bodily injury, fatal and or non-fatal and or damage to the property of third parties.

Engineering Business Interruption Insurance

The insurance looks at the actual loss of Gross Profits due to business interruption occasioned by an event covered under machinery breakdown insurance.( Sudden and unforeseen damage including breakdown to plant and machinery.) When a key item of the machinery breaks down, the insured is faced with expensive costs of repairs. The interruption of the business makes the insured incur huge losses. This insurance seeks to make good the loss suffered by the insured.

The insurance covers loss of Profits, continuing business expenses (fixed costs) and or increased cost of working (additional expenditure necessarily and reasonably incurred for avoiding reduction in Turnover). The sum insured is the gross profit for the last complete financial year.

Industrial All Risks Insurance

The industrial all risks insurance covers loss of industrial property following fire & allied perils, burglary and accidental damage. It provides indemnity to property insured against any loss or damage from any cause.

Product Liability Insurance

Manufacturers may be held liable for the injuries/damage those products may cause. Products liability insurance protects the manufacturer’s or seller’s from liability claims related to loss or damage to property, death or bodily injury to a buyer/user/third party caused by defect or malfunction of the product, and, in some instances, a defective design or a failure to warn, either directly or indirectly.

Product liability insurance is designed to protect both the business and customer. This is because when a consumer is injured or loss occurs because of the product, they have the right to sue for compensation for their pain and difficulty.  This insurance protection pays for both legal fees and any compensation awarded in the suit.

Contaminated products insurance

The contaminated products insurance provides for liability following accidental contamination of food, drink, cosmetics, pharmaceuticals and tobacco products.  The cover may be extended to cover recall costs, business interruption loss and rehabilitation cost,

Stock floater insurance

This policy provides cover for loss or damage to stocks by fire & Allied perils and theft whilst stored in the insured’s owned or leased premises or in transit anywhere in Kenya.