Broadly speaking, this form of cover applies to any form of machinery or plant subject to mechanical or electrical stress. Engine turbine, generators, alternators, electric motors, transformers, switch gears and other power units fall within the ambit of this cover. Other units such as crane compressors and pump may also be insured.
The insurance is against sudden and unforeseen damage to the machinery from such causes as faulty materials construction or erection, vibration, maladjustment, misalignment, defective lubrication, loosening of parts, abnormal stress, fatigue, self-heating, centrifugal force and excessive electrical pressure. The sums insured must represent the current replacement values of the insured items including installation costs and customs duty.