I am buying expensive machinery for my factory. Should I take a fire policy on this machine?
Sarmesh Gandhi, Faridabad
Yes, you should include fire insurance for your machinery. However, the standard fire insurance excludes damage due to internal short-circuit of a machine. For such coverage, you need to buy a ‘machinery breakdown’ policy. It would cover damages due to internal short circuits and overheating types of damages. The cost of such a policy generally is around Rs 700 – Rs 1,000 per every lakh of sum assured.
