Manufacturing & Industrial Insurance
Comprehensive cover for manufacturing facilities, machinery, and industrial operations.
Critical Insurance for Manufacturing Operations
Manufacturing operations depend on machinery and equipment. A single breakdown can trigger significant financial setbacks and operational disruptions.
$124B
Manufacturing industry GVA in Australia (December 2023)
$60,230
Average workers' compensation claim cost (2023/24)
5.9%
Australian workers employed in manufacturing industry
For Australian businesses in manufacturing, construction, logistics, agriculture, food processing, and engineering, machinery is the heartbeat of operations.
A single unexpected breakdown doesn't just delay production, it can trigger significant financial setbacks through costly repairs, operational interruptions, and unmet client commitments.
Real Cost Examples from Australian Manufacturing
- • Mill turn centre crash due to operator setup error: $350,000+ AUD
- • Spindle collision on a 5-axis machine: $140,000+ AUD
- • Power surge causing CNC lathe failure: $19,000 AUD
Mandatory Workers' Compensation
Australian law requires employers to have workers' compensation to cover their employees. Manufacturing environments involve heavy machinery, hazardous materials, repetitive motions, and physically demanding tasks, all of which increase the risk of accidents and injuries. Workers' compensation insurance covers medical expenses and lost wages for employees injured on the job.
Machinery Breakdown Insurance
Machinery Breakdown Insurance protects your business when essential equipment suddenly stops working. Unlike property insurance which covers external damage, this policy steps in when machinery fails from an internal fault such as parts breaking, seizing, or overheating.
What's Covered
Comprehensive Protection
Machinery breakdown insurance typically covers sudden and unforeseen mechanical or electrical breakdown (component failure, short circuits, burnout, or seizing), damage from internal defects or faults (broken parts, deformation, or overheating caused by internal malfunction), and pressure vessel damage.
Electrical Failures
- Short circuits and burnout
- Power surge damage
- Component failure
Mechanical Failures
- Broken parts and deformation
- Overheating malfunction
- Seizing and lockup
Industrial Machinery Coverage
Coverage includes refrigerators, air conditioners, and other types of industrial machinery that are not portable. Manufacturing facilities often operate large machinery such as conveyors, pumps, and generators, and insurance safeguards these machines against unexpected issues.
Production Equipment
- • Conveyors and pumps
- • Generators and motors
- • Manufacturing machinery
Climate Control
- • Industrial refrigeration
- • HVAC systems
- • Cold storage units
Specialized Equipment
- • CNC machines
- • Pressure vessels
- • Processing equipment
Key Differences from Standard Insurance
In Australia, machinery insurance typically covers external risks such as fire, theft, or natural disasters, while machinery breakdown insurance specifically protects against internal failures like electrical or mechanical breakdowns.
Standard Machinery Insurance
Safeguards against external damages such as fire, theft, vandalism, and natural disasters.
Breakdown Insurance
Ensures coverage for sudden and unforeseen internal malfunctions, electrical failures, and mechanical breakdowns.
Real Financial Impact Examples
Actual Industry Claims
Mill Turn Centre Crash
$350,000+
Due to operator setup error
5-Axis Spindle Collision
$140,000+
Machine spindle collision damage
CNC Lathe Power Surge
$19,000
Power surge causing failure
Additional Coverage Options
Business Interruption
Financial losses from downtime due to equipment failures, protecting your revenue during repair or replacement periods.
Spoilage Coverage
For businesses involved in food processing, where significant quantities of stock and ingredients are kept in cold storage, spoilage coverage is particularly beneficial.
Data Recovery
Costs for IT systems affected by equipment breakdown, including data restoration and system recovery.
Temporary Equipment
Additional operating costs like renting temporary equipment while your regular machinery is being repaired or replaced.
2025 Market Insights
ISR (Industrial Special Risks) policies are common for larger Australian businesses, often with asset values or turnover above $5 million. The market shows active offerings from multiple providers, indicating a competitive marketplace for 2025 with comprehensive coverage options available to protect against costly equipment failures and business interruption.
Our Underwriting Partners
We work with Australia's leading manufacturing and industrial insurance underwriters:
Vero Insurance
Equipment breakdown with business interruption and spoilage coverage, higher liability limits available
Underwriting Agencies of Australia
Leading plant and machinery insurance provider with Gary Woodhams as National Underwriting Manager
Insuregroup
Australia's leading machinery insurance broker specializing in plant and equipment breakdown
Tudor Insurance
30+ years providing tailored solutions and local expertise for manufacturing enterprises
Bizcover
Online machinery breakdown insurance specialists with customized packages for all business sizes
FD Beck Insurance
Melbourne-based provider offering customized machine insurance packages
Specific Products Available
Machinery Breakdown Insurance
Coverage for internal mechanical and electrical failures including parts breaking, seizing, or overheating
Protects conveyors, pumps, generators, and essential production equipment
Plant & Equipment Insurance
Comprehensive protection for mobile and stationary plant used in manufacturing, construction, logistics, and agriculture
Covers sudden and unforeseen breakdowns
Business Interruption Coverage
Protection for production downtime and revenue loss when essential machinery fails
Covers ongoing expenses during repair periods
Industrial Special Risks (ISR)
Comprehensive policies for larger manufacturing businesses with asset values or turnover above $5 million
All-in-one coverage for complex industrial operations
Protect Your Manufacturing Operations
Don't let machinery breakdown devastate your business. Get comprehensive coverage tailored to industrial operations.