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Equipment Breakdown

Insurance provider: Vero



What is insured?

Covers sudden and accidental breakdown of an item of Equipment, which is defined as machinery, pressure plant, electrical machine/apparatus or equipment or electronic equipment (eg. air conditioning units, refrigerators/freezers, pumps, etc).

Maximum Sum Insured: $10,000,000

Expediting Expenses: The reasonable extra cost to make temporary repairs or expedite permanent repairs

Temporary Hire Costs: up to $25,000 or 50% normal cost of repairs, whichever lesser

Electronic Data Restoration: $500,000

Excess: $2,500 each and every claim.


What is insured?

Spoilage or deterioration of food, food products and non-alcoholic beverages under refrigeration, as a result of a Breakdown, including the cost of disposal of said products.

Maximum Sum Insured: $15,000

Excess: 10% of the loss, with a minimum of $500 each and every claim

Business Interruption: Loss of Gross Revenue

What is insured?

If your business is interrupted as a result of a Breakdown to an item of Equipment, additional costs to continue operating is covered, including cost to use other equipment and other necessary emergency expenses.

Maximum Sum Insured: $10,000,000 (Combined Limit - Breakdown + Loss of Revenue)

Additional increased cost of working: $75,000

Indemnity period: 12 months

Excess: first 48 hours of interruption

Major exclusions

  • Corrosion, erosion of material or the need to clean any component, wear & tear, etc
  • Vehicles, locomotive or rolling stock, watercraft, aircraft power, mobile plant & equipment
  • Loss of Gross Profit or Gross Rentals
  • Portable items during Transit or Temporary Removal to another premises
  • Alcoholic Beverages under refrigeration
  • Destruction, distortion, erasure, corruption, alteration or misinterpretation or misappropriation of Electronic Data.

Need to make a claim?

1. You should contact us immediately if your claim will exceed the policy excess, as the insurer may wish to appoint an Assessor. The Assessors role is to act on behalf of the Insurer and help the client with the claim until finalised. Do not proceed with repairs/replacements unless LCA Insurance or Assessors have given approval.

2. Prevent further loss - for example get ice for a cool room, move stock to a different cool room or use spare equipment

3. Preserve evidence - do not dispose of parts, equipment or stock without Vero Insurance's knowledge or consent

4. Seek out lowest cost for repair or replacement

5. Complete a Equipment Breakdown Claim Form and email to LCA Insurance together with relevant documentation.

Please note that this website only provides a summary of coverage. More detailed information is available by contacting LCA Insurance directly. The insurers policy wordings will take precedence over information contained in this website.