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MACHINERY BREAKDOWN INSURANCE THAT KEEPS ALUMINIUM PRODUCTION MOVING
Why Machinery & Equipment Breakdown Insurance Matters in Aluminium Manufacturing
Aluminium manufacturing is equipment-led. Whether your operation focuses on smelting and casting, extrusion, rolling, fabrication, or CNC machining, the business depends on a chain of production-critical machines working reliably and safely. When one link fails, the consequences are rarely limited to a repair bill.
A spindle failure can stall CNC output for weeks. A compressor breakdown can take multiple machines offline. A transformer or control cabinet fault can stop casting or extrusion lines instantly. Cooling system failures can lead to equipment damage, scrap, and restart costs. In aluminium environments, heat, vibration, dust, swarf, coolants, and electrical load all put additional strain on equipment.
Machinery & equipment breakdown insurance (often called engineering insurance or machinery breakdown cover) is designed to respond when insured equipment suffers sudden and unforeseen physical damage or breakdown (subject to the policy wording). When arranged correctly, it can cover repair or replacement costs and — when combined with business interruption — can protect your profit during downtime.
Insure24 specialises in placing machinery breakdown insurance for UK aluminium manufacturers and engineering businesses, matching cover to the real risks of modern production: CNC controls, drives, electronics, automation, extraction, compressed air, and production bottlenecks.
What Machinery Breakdown Insurance Typically Covers
Policy wordings vary by insurer, but a well-built machinery breakdown programme is focused on the costs you face after a genuine breakdown event: repairs, replacement parts, specialist engineers, and reinstatement of damaged equipment. For aluminium manufacturers, we also consider the knock-on effects of failure within supporting systems such as compressors, cooling, extraction, and power distribution.
- Repair or replacement of insured machinery following sudden breakdown or damage
- Electrical and mechanical failure (where included by wording)
- Control panels, drives and CNC controls damaged by covered events
- Specialist engineer call-out and labour costs (where insured)
- Expediting expenses (optional) to speed up repairs or parts delivery
- Temporary hire / replacement equipment (optional) to keep production moving
- Damage to connected plant caused by the breakdown event (where applicable)
Most claims problems come from mismatched expectations — for example, assuming “all risks” applies to wear and tear, or not declaring key equipment. We help you structure the policy schedule and wording so it aligns with how your equipment actually fails in the real world.
Common Extensions We Arrange
- Business Interruption (Machinery) – loss of gross profit due to breakdown-caused downtime
- Deterioration of Stock – spoilage or loss due to refrigeration/chiller breakdown (where relevant)
- Electrical Supply / Power Disturbance – protection aligned to your plant resilience
- Inspection & Statutory Engineering – inspection services for certain plant types
- Own Surrounding Property – damage caused by the breakdown event (when included)
- Increased Cost of Working – outsourcing, overtime and additional transport to meet delivery targets
These options are particularly valuable for aluminium businesses with tight delivery schedules, audited supplier status, or “single point of failure” machines that carry a large share of output.
Equipment We Commonly Insure for Aluminium Manufacturers
Machinery breakdown insurance is not one-size-fits-all. A CNC machining workshop may focus on spindles, drives and control cabinets. A casting operation may focus on furnaces, holding pots, cooling systems and electrical distribution. Extrusion and rolling add high-load mechanical systems, hydraulics, drives and motors. We build schedules that reflect your actual plant, including the supporting equipment that can stop production even when the “main machine” is fine.
Machining, Fabrication & Workshop Plant
- CNC mills, lathes, routers, machining centres and multi-axis systems
- Spindles, servo drives, encoders, tool changers, and CNC control units
- Press brakes, guillotines, saws, punches, and laser/waterjet units (where applicable)
- Welding plant and fume extraction (TIG/MIG setups and extraction systems)
- Air compressors, air receivers, dryers, and air distribution systems
- Dust extraction, filtration units, and coolant management systems
- Forklifts and lifting equipment (often covered separately but can be reviewed)
CNC breakdown is often a mix of mechanical and electronic failure. We make sure the cover reflects the real cost of electronics and controls, not just the metalwork. Where you rely on a single machine, we’ll also look at downtime planning.
Smelting, Casting, Extrusion & Heavy Plant
- Furnaces, holding furnaces, burners, and temperature control systems
- Casting lines, mould systems, cooling circuits and water systems
- Extrusion presses, hydraulics, pumps, valves, and drive systems
- Rolling mill equipment, motors, gearboxes, and control systems
- Cranes, hoists and lifting systems (subject to inspection requirements)
- Transformers, rectifiers, switchgear, and electrical distribution where insurable
- Cooling towers, chillers, heat exchangers, and process cooling equipment
Heavy plant breakdown events can create complex losses: damage, delayed restart, scrap, and safety obligations. Where plant is highly specialised, we also consider expediting and sourcing lead times as part of downtime risk planning.
Common Breakdown Scenarios in Aluminium Operations
Underwriters care about how machines fail — not just what they cost. Below are typical scenarios we see in aluminium manufacturing. These are useful when building your insurance presentation, and they help you implement practical risk controls that can improve premiums.
CNC & Electronics Failures
- Spindle bearing failure leading to seizure and collateral damage
- Drive faults (servo drives, inverters) stopping machine movement
- Encoder errors or feedback faults causing crashes and rework
- Coolant ingress into cabinets causing electrical shorting
- Power disturbance damaging control boards and PLCs
- Extraction failure causing contamination and overheating
The key is accurately declaring the presence of electronics and control value. A “cheap” machinery schedule can backfire if it underestimates the cost of modern CNC controls and drives.
Mechanical, Hydraulic & Process Failures
- Hydraulic pump failure or valve damage stopping presses and heavy plant
- Gearbox failure from load, vibration, or lubrication issues
- Motor burn-out and winding failure from overheating or overload
- Cooling system breakdown causing overheating and secondary damage
- Compressor failure leading to plant-wide downtime
- Conveyor or material handling failure creating a production bottleneck
Many aluminium operations are vulnerable to “support equipment” failures. A single compressor or chiller can shut down multiple production cells. We always ask what would stop you producing tomorrow.
What this means for your cover
Machinery breakdown insurance is most valuable when it’s paired with realistic downtime planning. A policy that pays repairs but leaves you exposed to missed delivery penalties, overtime, and outsourcing costs still leaves the business vulnerable. For aluminium manufacturers, we often recommend combining machinery breakdown with business interruption, and ensuring the indemnity period reflects real lead times for parts, engineers and recommissioning.
When our main compressor failed, production across the workshop stalled. Insure24 helped arrange machinery breakdown cover with downtime protection, and the claim process was straightforward. It made a real difference to cashflow during the interruption.
Production Manager, Aluminium Fabrication & CNC WorkshopWhat Insurers Need to Quote Machinery Breakdown for Aluminium Manufacturers
Engineering insurers quote based on the quality of your equipment information, the criticality of plant, and your maintenance and inspection controls. Strong information reduces delays and improves terms. If the insurer can see you understand your plant and manage risk, you are typically viewed as a better proposition.
Insure24 helps you present the risk in a way that underwriters recognise: clear schedules, realistic values, and a practical story around maintenance, spares and downtime planning.
Key Information We Usually Request
- Machinery list: make/model, age, serials (where available), and location
- Replacement values or reinstatement costs (not just historic purchase price)
- Critical machines: what stops production, and what can be bypassed
- Maintenance: planned preventative maintenance schedule and service providers
- Inspection regime for lifting/pressure plant where applicable
- Power resilience: surge protection, UPS, generator, and electrical maintenance
- Claims history and lessons learned from past breakdown events
If you don’t have a formal schedule yet, we can help you create one using a simple template so it’s easier to remarket at renewal.
Controls that Typically Improve Terms
- Documented PPM, lubrication management and planned component replacement
- Thermal imaging or electrical inspections for control cabinets and switchgear
- Condition monitoring for high-value spindles, motors and gearboxes
- Spare parts strategy for long-lead items (drives, boards, pumps, spindles)
- Coolant filtration and cabinet sealing to prevent ingress
- Operator training to reduce crashes, overload and misuse
- Housekeeping around swarf/dust/extraction to reduce contamination and overheating
The best insurance strategy is a combined approach: solid controls to reduce losses, and a well-structured policy to protect you when failures still occur.
STRUCTURE YOUR COVER
AROUND CRITICAL EQUIPMENT
A common mistake is buying machinery breakdown cover as a bolt-on without thinking about how the business actually fails. Insure24 takes a production-first approach: we map your bottlenecks, identify your critical machines, and build cover that reflects real downtime and reinstatement costs.
PROTECT YOUR PLANT
- Correct scheduling of CNC machines, heavy plant, compressors and supporting equipment
- Replacement values based on current supply chain pricing and commissioning costs
- Cover alignment for electronics, drives and control cabinets
- Optional expediting and hire of temporary machinery to reduce downtime
- Clear deductibles aligned to your tolerance for small repairs vs major losses
Getting the values right is crucial. Underinsuring machinery can reduce claim payments and create disputes. We focus on realistic reinstatement costs, not just historic asset values.
PROTECT YOUR OUTPUT
- Business interruption for machinery breakdown (loss of gross profit / revenue)
- Increased cost of working for outsourcing, overtime and logistics
- Indemnity periods that reflect lead times for parts, engineers and recommissioning
- Downtime planning around single points of failure
- Claims support and guidance to speed up the process
For aluminium businesses with tight tolerances and delivery windows, protecting profit during downtime can be more valuable than the repair bill itself.
Machinery Breakdown Cover Options (Typical Structures)
The right structure depends on your equipment values, how dependent you are on uptime, and how quickly you can recover after a failure. Below are common approaches we arrange for aluminium manufacturers and engineering businesses.
Essential Machinery Breakdown
Best for: Smaller workshops or businesses with multiple alternative machines
- Cover for key scheduled machinery and supporting equipment
- Practical deductibles to keep premiums competitive
- Focus on repair/replacement costs
A cost-effective entry point where the main concern is the repair bill. We still ensure schedules and values are accurate.
Machinery Breakdown + Downtime Protection
Best for: CNC-heavy operations, single-point-of-failure equipment, tight delivery schedules
- Machinery breakdown plus business interruption
- Increased cost of working for outsourcing and overtime
- Expediting expenses to reduce repair lead times (optional)
Often the most suitable option for aluminium manufacturers that cannot afford extended downtime and need profit protection during recovery.
Enhanced Engineering Programme
Best for: Higher values, complex plant, heavy production assets
- Broader schedules including heavy plant and critical infrastructure
- Higher limits, tailored deductibles, and aligned wording
- Optional inspection/engineering support services
Designed for businesses where equipment failure can lead to significant repair costs and extended recommissioning time.
Multi-Site / OEM Supplier Structure
Best for: Multiple locations, audited suppliers, complex supply chains
- Coordinated cover across sites with consistent schedules and values
- Downtime planning and business interruption aligned to contracts
- Claims and risk presentation support for better market outcomes
Ideal where the business needs to demonstrate robust risk management and continuity planning to customers and insurers.
FREQUENTLY ASKED QUESTIONS
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What is machinery & equipment breakdown insurance?
Machinery & equipment breakdown insurance is a specialist engineering policy designed to cover the cost of repairing or replacing insured machinery
after sudden and unforeseen breakdown or physical damage (subject to policy wording). It’s commonly used by aluminium manufacturers to protect CNC machines,
compressors, production plant, and production-critical equipment.
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Is machinery breakdown the same as property insurance?
Not usually. Property insurance typically responds to insured perils like fire, flood, theft, and certain accidental damage (depending on wording).
Machinery breakdown is designed specifically for internal breakdown events such as mechanical or electrical failure. Many businesses carry both,
because breakdown can happen without fire or other property perils.
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Does it cover wear and tear or maintenance?
Generally, no. Most policies exclude gradual deterioration, wear and tear, corrosion, and maintenance costs. However, some policies can still respond
to sudden breakdown events even where a component fails unexpectedly. The key is selecting the right wording and accurately presenting your maintenance controls.
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Can I cover CNC control boards, drives and electronics?
Yes — and for many aluminium machining operations, that’s essential. Modern CNC machines rely heavily on electronics and control systems.
A well-structured machinery breakdown policy can insure these components, but they must be properly declared and valued.
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Will the policy cover loss of income from downtime?
Only if business interruption for machinery breakdown is included. Machinery breakdown on its own typically focuses on repair/replacement costs.
If downtime threatens cashflow, gross profit, or delivery performance, it’s worth considering business interruption and increased cost of working.
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What information do you need to quote?
Typically: a machinery schedule (make/model/age where possible), replacement values, what equipment is critical to output,
your maintenance approach, and claims history. If you don’t have a schedule, Insure24 can help you create one.
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How do deductibles work on machinery breakdown?
Most policies include an excess (deductible) per claim. Higher deductibles can reduce premium but increase your cost on smaller claims.
We help you select deductibles that match your appetite for self-insuring minor repairs while still protecting you from major failures.
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Can you insure heavy aluminium plant like furnaces or extrusion presses?
Often, yes, subject to underwriting and engineering review. Heavy plant may require additional information, surveys, and careful valuation.
We’ll approach the right markets and structure cover around the critical failure modes and realistic lead times for repairs and recommissioning.