Production line · standstill · delivered product
Business insurance for industry through Allianz
In a manufacturing business the machine is rarely the most expensive loss. That is the period in which the line stands still and the batch already at the customer's premises.
- Several insurers compared objectively
- 9.5 customer rating for a new policy
- AFM licence 12016589
- Personal 072 - 509 24 56, weekdays 9–17
Deze pagina in het Nederlands: Bedrijfsverzekeringen voor de industrie via Allianz.
The calculator and the quote form below are in Dutch. Prefer to do this in English? Email info@finassverzekert. nl or call 072 - 509 24 56 and we will take it from there.
Work out for yourself what it would cost.
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- We compare the offerings of several insurers
- An adviser checks whether the cover suits your activities
- We arrange the switch, including cancellation
A premium indication, not personal advice. Prefer to talk it through? Call 072 - 509 24 56.
In brief
Finass acts as an intermediary for the business range of Allianz and compares more than thirty companies objectively. The choice follows from your production process. An industrial package usually consists of buildings, business contents and goods, machinery breakdown, business interruption and liability. For process installations, the specific explanation at liability in the process industry.
The hinge in an industrial file is the link between machinery damage and standstill. Ordinary business interruption insurance pays only after material damage caused by an insured peril such as fire or storm. If a gearbox breaks or a control system seizes up from an internal cause, that is machinery breakdown, and the standstill that follows is only covered where a section for business interruption after machinery breakdown is included. That is the most frequently missing section in the SME segment of manufacturing.
Just as decisive is the indemnity period. It has to bridge the time between the loss and the moment you are back at your former turnover level, including the delivery time for a replacement machine, the rebuilding of a hall, the restoration of certification and the winning back of customers. For a line with specialist equipment a short period is rarely enough. See also the general explanation at business interruption insurance and machinery breakdown insurance.
This page deals with one situation. The full overview is on SME insurance package.
Where industrial policies stop
Four items that insurers in this sector expressly leave outside the cover.
Recalling a batch is not covered
If it turns out after delivery that a batch is not sound, the costs of tracing, recalling, destroying and re-supplying are recall costs. They fall outside ordinary liability cover, which pays only for injury or property damage the product causes to someone else. A recall is separate cover. The basic rules of product liability are set out at product liability.
The defective product itself
If your component damages a complete machine at the customer's premises, that machinery damage is property damage suffered by a third party and is covered in principle. The value of the defective part itself is not: that is your your own work. If the loss is limited to lost turnover at the customer without anything being broken, it is pure financial loss and falls outside the AVB.
Wear, corrosion and operating errors
Machinery breakdown cover relates to a sudden and unforeseen event. Gradual deterioration, corrosion, erosion, scaling and normal wear of parts are excluded, as is damage consisting only of replacing a wearing part. Parts with a limited service life, such as dies, blades and filters, often appear on a separate exclusion list.
Contamination and emissions
Soil and water contamination from your site is not property damage to a third party and falls outside the liability section. For that there is environmental damage insuranceAdministrative fines and penalty payments from an environmental agency remain uninsured, and damage caused by a deliberate breach of a regulation runs into the intent exclusion of Article 7:952 of the Dutch Civil Code.
What does your premium depend on?
- Nature of the production process: cold, hot, chemical or involving naked flames
- Replacement value of the machinery: the basis for machinery breakdown cover
- Indemnity period chosen: the period for which loss of turnover is paid
- Fire compartmentation: separation between production, storage and offices
- Sales market: supply outside Europe changes the product risk
- Maintenance regime: inspections and preventive maintenance lower the rate
Insurers weigh these details differently. That is where your saving is.
What the package pays in production
| Situation | Basic | Extended |
|---|---|---|
| A short circuit in a control cabinet sets the production hall on fire | Yes | Yes |
| The gearbox of your extrusion line breaks with no identifiable external cause | No | Yes |
| An operator leaves a tool in the press and the die breaks | No | Provided that |
| After a covered fire the hall stays closed for weeks while the structure is inspected first | Yes | Yes |
| A voltage surge on the public grid takes down the line's control system | Provided that | Yes |
| Your supplier is at a standstill after a fire and you cannot produce as a result | No | Provided that |
The extended column assumes that machinery breakdown and the standstill that follows from it appear as separate sections on the contract.
Frequently asked questions
This is what people ask us most.
Why does my business interruption insurance not cover a machine failure?
Because that cover is tied to material damage caused by an insured peril, usually fire, storm, lightning or water. An internal breakage in a machine is not among them. If you want the standstill after such a breakage to be paid, the section for business interruption following machinery breakdown must be included, with its own waiting period and its own indemnity period.
Who is liable if my product causes damage?
The producer can be held liable under the product liability rules for damage caused by a defective product, and alongside that there is ordinary liability under Article 6:162 of the Dutch Civil Code. What is insured is injury and property damage suffered by others. The costs of replacing your own product and of a recall are not included.
Do staff working with machinery count separately?
Yes. Injury caused by a drive, a press, a forklift or escaping steam falls under employers' liability, provided it is included. Article 7:658 of the Dutch Civil Code requires demonstrable instruction, guarding and supervision from you; if that record is missing, liability is quickly assumed. For accidents independent of liability there is collective personal accident insurance.
What if I take a second site into use?
Report it before it comes into use. A new hall changes the fire compartmentation, the storage situation and the spread of your production. Article 7:928 of the Dutch Civil Code requires you to declare the changed risk and Article 7:930 DCC gives the insurer scope to reduce the payout where that has not happened. The sums insured also have to be set again.
Read more
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