Machinery Breakdown Insurance for Ceramic Equipment (UK): A Practical Guide

Who this guide is for

If you run a ceramics business—manufacturing technical ceramics, tiles, sanitaryware, tableware, refractories, or ceramic components—your production depends on specialist machinery that’s expensive to repair and slow to replace. This guide explains how machinery breakdown insurance (also called engineering insurance or plant breakdown cover) works for ceramic equipment, what to look for in a policy, and how to make a claim go smoothly.

What “machinery breakdown” means (in plain English)

Machinery breakdown insurance is designed for sudden and unforeseen physical damage to insured plant and machinery caused by internal failure.

It’s different from standard property insurance, which is mainly built for external events like fire, flood or theft. Machinery breakdown focuses on things like:

• Electrical failure (short circuits, arcing, motor burn-out)
• Mechanical failure (bearing collapse, gearbox failure, seizure)
• Control system failure (PLC faults, drive failures)
• Pressure system failure (where insured and compliant)
• Operator error leading to internal damage (depending on wording)

For ceramics, this is especially relevant because many critical assets run hot, run continuously, and have complex electrical and control components.

Ceramic equipment commonly insured

Policies vary, but machinery breakdown cover is often arranged for:

• Kilns (tunnel kilns, shuttle kilns, roller hearth kilns)
• Kiln cars and drive systems
• Burners, blowers, fans and combustion control systems
• Dryers (spray dryers, chamber dryers, belt dryers)
• Mills and mixers (ball mills, attritors, blungers, pug mills)
• Presses (hydraulic presses, isostatic presses)
• Extruders and forming lines
• Glazing lines (pumps, spray systems, conveyors)
• Conveyors and handling systems
• Dust extraction and filtration plant (fans, motors, control gear)
• Compressors and compressed-air systems
• Chillers and cooling systems
• Robotics and automation equipment
• Transformers, switchgear and variable speed drives (VSDs)

Tip: if a piece of equipment is a single point of failure for your production, it’s a strong candidate for machinery breakdown cover.

What’s typically covered

Always check the policy wording, but machinery breakdown insurance commonly includes:

1) Repair or replacement of damaged machinery

Cover for the cost to repair the insured item, or replace it if repair isn’t economical.

2) Associated costs

Depending on the policy, you may be able to include:

• Overtime and call-out charges
• Express freight for critical parts
• Specialist contractor costs
• Dismantling and re-erection
• Calibration and testing after repair

3) Optional business interruption (BI) following breakdown

This is where ceramics businesses often see the biggest benefit.

If your kiln, dryer or press fails, the repair bill is one thing—but the lost production time can be far more costly. Machinery breakdown BI can cover:

• Loss of gross profit due to reduced output
• Increased cost of working (e.g., outsourcing firing, renting temporary plant)
• Extra transport and handling costs

If you’re quoting lead times to OEMs or construction supply chains, BI cover can help protect cashflow and customer relationships.

What’s usually not covered (common exclusions)

Exclusions differ by insurer, but these are common areas to watch:

• Wear and tear and gradual deterioration
• Corrosion, erosion, scaling (important for wet processing and slurry systems)
• Consumable parts (e.g., belts, filters, seals) unless damaged by an insured event
• Defective design or workmanship (sometimes covered for resultant damage, but not the defective part itself)
• Lack of maintenance or known defects
• Damage during installation or commissioning (may need separate cover)
• Fire and external perils (often handled by your property policy)
• Heat damage that is “expected” as part of the process

For kilns, insurers can be cautious about anything that looks like gradual thermal fatigue. The key is to show the event was sudden and unforeseen (for example, a motor failure causing a conveyor jam that leads to internal damage).

Why ceramics operations are seen as higher risk

Insurers price risk based on frequency and severity of claims. Ceramics sites can look higher risk because:

• High operating temperatures and continuous running
• Dust (especially fine silica) affecting motors, bearings and control cabinets
• Thermal cycling causing stress on components
• Complex automation and control systems
• Long lead times for specialist parts
• Knock-on losses when a single kiln or dryer goes down

The good news: strong engineering controls and maintenance evidence can materially improve terms.

Key policy features to get right

Sum insured (replacement value)

Machinery should be insured on an appropriate replacement basis. Under-insurance can reduce claim payments.

For older kilns or bespoke lines, replacement may involve:

• Custom fabrication
• Specialist installation
• Electrical integration and commissioning

Make sure the declared value reflects the real-world cost to get back to the same output.

Excess (deductible)

Engineering policies often have a higher excess than standard property cover. Choose an excess you can comfortably absorb without delaying repairs.

Indemnity period for BI

Common options are 3, 6, 12 or 24 months. For ceramic equipment with long lead times, a short indemnity period can be a false economy.

“Additional increase in cost of working”

If you can outsource firing or rent temporary equipment, this extension can be valuable. It helps you keep customers supplied even when your own plant is down.

Breakdown definition and insured perils

Look for broad wording that includes electrical and mechanical breakdown, and check how the policy treats:

• Control system failures
• Power quality issues
• Operator error
• Resultant damage

Inspection and statutory compliance

If you have pressure systems, lifting equipment or boilers, insurers will expect compliance with UK requirements (for example, written schemes of examination where applicable). Non-compliance can complicate claims.

Risk controls that insurers love (and that reduce downtime)

You don’t need a perfect site—just a well-run one. These controls often help you secure better terms:

• Planned preventative maintenance (PPM) schedules for critical assets
• Condition monitoring (vibration analysis, thermography, oil analysis)
• Spare parts strategy for long-lead items (motors, drives, PLC modules)
• Dust management: extraction, housekeeping, sealed cabinets, correct filters
• Electrical protection: surge protection, correct earthing, thermal overloads
• Temperature monitoring and alarms on kilns and dryers
• Training and lockout/tagout procedures
• Contractor management for hot works and electrical work

If you can show maintenance logs and inspection records, it’s easier to demonstrate “sudden and unforeseen” breakdown rather than gradual deterioration.

Claims: what to do when a kiln or press fails

When breakdown happens, speed and documentation matter.

Step-by-step

1. Make safe: isolate power, stop the line, follow site procedures.
2. Prevent further damage: don’t keep running “to see if it clears”.
3. Notify your broker/insurer early: even if you don’t know the full cost yet.
4. Document the event: photos, alarms, fault codes, operator notes.
5. Keep damaged parts (where possible) for inspection.
6. Get repair quotes and lead times.
7. Track downtime and production impact for BI.

What insurers will ask

• What failed and when?
• What was the immediate cause?
• What maintenance was done and when?
• Any prior warnings or recurring faults?
• What steps were taken to mitigate loss?

The more organised your evidence, the smoother the claim.

How premiums are calculated (what affects your price)

Insurers typically look at:

• Type, age and value of equipment
• Maintenance regime and condition monitoring
• Claims history
• Criticality (single points of failure)
• Operating hours and thermal cycling
• Site environment (dust, humidity, corrosive atmospheres)
• Availability of spares and service support
• Business interruption exposure (turnover and gross profit)

If you’ve invested in upgrades—new drives, improved extraction, modern controls—make sure that’s reflected in the presentation to insurers.

Common ceramics scenarios (and how insurance responds)

Scenario 1: Motor burn-out on kiln conveyor

A motor overheats and fails, stopping the conveyor and causing internal damage to the drive system.

• Machinery breakdown may cover repair/replacement of the motor and drive components.
• BI cover may respond to lost output during repair.

Scenario 2: PLC failure stops a glazing line

A control module fails suddenly, halting the line.

• Cover depends on wording and whether the PLC is listed/declared.
• Keeping spare modules can reduce downtime and BI impact.

Scenario 3: Bearing failure on a ball mill

A bearing collapses and damages the shaft.

• Sudden failure is typically insurable.
• If evidence suggests long-term wear with ignored warnings, insurers may challenge.

Scenario 4: Compressor failure impacts multiple processes

Compressed air is essential for actuators and controls.

• Machinery breakdown can cover the compressor.
• BI can cover knock-on losses if air loss stops production.

Choosing the right cover: a simple checklist

Before you buy or renew, ask:

• What are our top 5 single points of failure?
• Do we know the true replacement cost (including install and commissioning)?
• Do we need BI, and for how long could we realistically be down?
• Are control systems and electrical items included?
• What evidence can we provide for maintenance and inspections?
• Do we have a spares plan for long-lead parts?

FAQs

Is machinery breakdown the same as equipment warranty?

No. A warranty is a contract with the manufacturer and often has limits and conditions. Machinery breakdown insurance is designed to respond to sudden, unforeseen damage—often including older equipment.

Does it cover wear and tear?

Usually not. Insurance is for sudden events, not gradual deterioration. However, a sudden failure caused by an internal defect may be covered, depending on wording.

Can I insure just one kiln or one press?

Often yes. Many businesses start by insuring critical assets first, then expand cover.

Do I need business interruption cover as well?

If downtime would materially hit revenue or gross profit, BI is worth considering—especially where replacement parts have long lead times.

Will insurers require inspections?

Some engineering policies include inspection services or require evidence of statutory inspections for certain plant types. Your broker can confirm what applies to your equipment.

Next steps (and a practical CTA)

Machinery breakdown insurance can be one of the most valuable protections for ceramics manufacturers—because it targets the failures that stop production without warning.

If you want a quote or a quick review of your current cover, prepare a short equipment list (kilns, dryers, presses, compressors), approximate replacement values, and any recent maintenance/inspection records. With that, we can help you structure cover that protects both repair costs and lost production time.