Comprehensive Machinery Insurance or CMI is a type of insurance that covers sudden and unforeseen damage to machinery and equipment used in commercial or industrial operations. It protects against losses from mechanical or electrical breakdowns, operational failures, and external causes like accidents, provided the damage requires repair or replacement. Typically, it covers a wide range of equipment, such as Production Machinery, Power Plants, Generators, or heavy industrial tools, but excludes normal wear and tear, wilful negligence, or pre-existing defects. This insurance is crucial for businesses to minimize financial losses from unexpected equipment failures.

Business Interruption Insurance or BI covers financial losses a business incurs when its operations are disrupted due to a covered event, such as equipment breakdown, fire, or natural disasters. It compensates for lost revenue, fixed costs (e.g., rent, salaries), and extra expenses incurred to resume normal operations during the interruption period. This insurance is often paired with property or machinery insurance and is critical for businesses to maintain financial stability during unexpected disruptions. Exclusions may include losses from non-covered events or normal operational delays.

There are lot of concers regarding Comprehensive Machinery Insurance as compared to routine Property policy, please read in detail various aspectes related to this coverage.

Topics:

• Property Policy vs CMI
• Target Risks for CMI Policy
• Is Accounting profit is best choice for BI?
• Negatives of CMI & BI

Further you can read more on above topics here

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