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Machinery and Equipment (M&E) Insurance Cover in Malaysia

Machinery and Equipment (M&E) Insurance

Machinery and equipment insurance is also known as machinery breakdown insurance in Malaysia. This insurance is used to cover the cost of repairs or total replacement of machines and equipment failure, at factories or work sites.

This insurance is similar in concept to a comprehensive car insurance. If you are looking for a total factory or business premises insurance coverage, the following will be more appropriate:

Machinery and Equipment (M&E) Insurance Coverage

This machinery and equipment breakdown insurance covers specific types of:

  • Functional machinery and equipment
  • Risks and Perils
  • Damages

Machinery And Equipment Types Covered

This machinery breakdown insurance covers the following types of machinery and equipment:

  • Equipment and machines that are immobile or non mobile when used.
    • Forklifts (without road tax) and other mobile equipment insurance are instead covered under Business All Risks Insurance
    • Forklifts (with road tax) insurance are covered under Commercial Vehicle Insurance
  • Electrical equipment
  • Mechanical plants and equipment
  • Process machinery

This list is not comprehensive for every insurance company. Some insurance companies will cover and some will not. You will need to check with a few insurers if they will cover your machinery and equipment. Or just contact Red Cover Insurance Agents.

Electrical Equipment Insurance Covered

The following electrical machinery and equipment usually covered by this type of insurance policy:

  • Motors
  • Rectifiers, Alternators and Generators
  • Switchgears and Transformers

Mechanical Plants and Equipment Insurance Covered

The following mechanical machinery and equipment usually covered by this type of insurance policy:

  • Engines and Turbines (Steam, Gas or Water)
  • Compressors, Pumps and Blowers
  • Machine Tools and Presses

Process Machinery Insurance Covered

The following production machinery and equipment usually covered by this type of insurance policy:

  • Production and assembly line machinery and equipment
  • Quality control and assurance machinery and equipment
  • Metal engineering processes
  • Chemical engineering processes
  • Wood engineering processes
  • Electronics engineering processes
  • Bakery, Kitchen and Bistro Equipment
  • Laundry Equipment
  • And many more

Machinery and Equipment (M&E) Insurance Risks and Perils Coverage

This insurance covers for equipment and machinery damages for the following risks and perils:

  • Fire and Lightning
  • Theft
  • Accidental Damages

Machinery and Equipment (M&E) Insurance Damages Coverage

This insurance pays for damages on the basis of types of loss:

  • Partial Loss
  • Total Loss

M&E Insurance Partial Loss Coverage

  • Cost of replacement parts
  • Cost of freight and customs for the parts
  • Workmanship costs to make good the machinery or equipment

M&E Insurance Total Loss Coverage

  • Actual value of the equipment or machinery
  • Cost of making good the site
  • Erection costs and related workmanship costs
  • Less the salvage value of the equipment
  • Less the deductible agreed within the insurance policy

Machinery and Equipment (M&E) Insurance Policy

What is a Machinery and Equipment (M&E) Insurance Policy?

This insurance policy covers damages to production machines or equipment in a factory or facility. The insurance policy will have the list of machinery and equipment as well as the location of the facility or factory.

How do we calculate the sum insured for the Machinery and Equipment (M&E) insurance policy?

The sum insured is the list of equipment and machinery as well as the cost of making repairs or replacement. This will depend on insured value to be partial loss or total loss values.

Different insurance companies have different rules, on what types of damages from what type of causes, that they will accept.

Ask our experienced business insurance agents on how to calculate the insurance premiums and sum insured for this policy.

What is the Machinery and Equipment (M&E) Insurance claims process?

This insurance claims process differs between insurance company SOPs. It is generally as follows:

1. List of items affected and the replacements costs.
3. List of items damaged due to what causes
4. Insurance adjuster investigation report
5. The excess to be paid by you as stated in the policy
6. The type of insurance taken, i.e., Partial Loss or Total Loss basis

Request for Quotation

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