Coverage for the 21st Century

With increased reliance on technology comes increased risk; the stakes are higher when equipment breaks down.

However, with the right insurance coverage, manufacturers can protect themselves against significant risks. A specialized policy protects manufacturers against many different causes of equipment breakdown.

Coverage Includes:

  • Coverage is available for all turning, milling, grinding, ecoline, ultrasonic and Lasertec technology.
  • Full repair costs (including parts and labor) in the event of sudden and unforeseen mechanical and electrical breakdown. This coverage begins when the factory warranty expires
  • Repairs will be done in accordance with DMG MORI Seiki’s original specifications, subject to the policy deductible
  • Coverage is provided for damage caused by Operator Error for the duration of the policy
  • All components are covered including high speed spindles and controls
  • All repairs will be covered on a “replacement cost” (new for old) basis.
  • Coverage is available for up to a five year term.
  • The cost of the insurance is fixed for the duration of coverage.

Machines must be serviced and maintained in accordance with DMG MORI Seiki’s recommended guidelines.

  • Jammed tooling
    While replacing the cutting tool in a computer numeric controlled (CNC) machine, the operator installed the wrong part. Upon start-up, the tool became jammed into the rotating chuck causing mechanical damage.
    Cost of repairs: About $55,000

  • Surge shorts lathe
    The spindle drive motor of a CNC lathe sustained electrical damage after a line surge.
    Cost of replacing the damaged motor: Over $22,000

  • Microelectronics damaged by dust and debris
    A CNC horizontal lathe broke down after excessive dust and debris accumulated on circuit cards and shorted out the control unit.
    Cost of replacing damaged components: Over $15,000

  • Lathe fails after lunch break
    After a CNC lathe operator returned from lunch, the lathe would not restart. A technician discovered that a circuit board was not sending the necessary operating signals. The board was replaced and the lathe returned to normal operation.
    Cost: $5,000

HSB TechAdvantage™is equipment breakdown and technology coverage that protects against losses caused by increasingly common technology-related failures. It provides coverage for breakdowns when physical damage is not readily detectable.

If equipment suddenly stops functioning and replacing that equipment or a part containing electronic circuitry restores functionality, it’s covered.

There are many causes of Equipment Breakdown, including:

  • Power Surge-Sags and surges in power line voltage can cause damage to manufacturing equipment. CNC and other machinery – particularly equipment that uses microelectronic components – could be severely affected.

  • Operator error-Despite the best of intentions, people make mistakes. Sometimes, mistakes can lead to an equipment breakdown. Insurance protects your business from breakdowns caused by these errors.

  • Electronic Circuitry Impairment- Breakdowns involving microelectronics can be especially difficult to diagnose because the damage to intricate circuit boards can’t always be seen. That’s why we provide additional coverage for breakdowns when physical damage is not readily detectable.