A laboratory requires several ancillary machines besides analytical instruments such as uninterrupted power supplies, analysis grade water systems, air compressors, gas generators, etc. Many such machines in use in analytical laboratories are precision machines, involving sophisticated technology and carry a high price tag. During the course of day-to-day operations, an accidental electrical or mechanical breakdown may stall the machines, thereby inflicting a heavy loss in terms of productivity.
A machinery breakdown policy comes in handy on such occasions. The insurer agrees to reimburse the costs incurred by the lab for repairing the damaged machines or replacing the damaged machines with similar machines with identical ratings.
Scope of the policy
The policy can be invoked if the breakdown has been caused by one or more of the following factors:
- Material / workmanship associated with the machine is defective
- Centrifugal forces disrupt the rotation of the machine’s parts
- Lubrication runs out because the lubricating oil pump has become defective or has stalled
- Safety devices fail
- Insulation system fails or voltage fluctuates widely, leading to electrical short-circuiting or electrical fire
- Other connected machines stall abruptly
- Intrusion of foreign bodies into machines that are in operation
- Inexperience on the part of the machine operator, leading to damage
Additional coverage available, optionally
Optionally, damage to the base of the machinery and the oil in the electrical apparatus can be covered. If the damage to the insured machines leads to damage to the surrounding property owned and controlled by the lab, such risk can be covered too. If a liability arises on account of a third party being injured or a damage being inflicted on the property of a third party, such liability will be assumed by the policy.
Price declaration while buying the machinery insurance policy
The lab should insure the machines for a sum that represents the price of the new machines on the day the policy is purchased, inclusive of customs duties, taxes, excise, freight, insurance premium, handling charges, etc. Under-stating the sum insured will reduce the settlement figure for the lab when it prefers a claim. Over-stating the sum insured will raise the outflow towards premium and inflict a loss on the lab.
Subsequent articles will deal with insurance of other laboratory components so as to prevent burden in case of loses.