Machinery Inherent Defects Insurance
Comprehensive cover for the mechanical and electrical services installed in buildings
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Modern buildings are becoming increasingly complex, with up to 40% of construction costs relating to the mechanical and electrical services that support them
These services can be plagued by defects caused by poor design, materials or workmanship, and this can be highly problematic for the owners and occupiers of affected buildings.
A traditional remedy has been the provision of collateral warranties by contractors. But with insolvencies in the construction and real estate sectors running at over 3,600 a year(1) in England and Wales, and 18% of all corporate insolvencies in Ireland(2), these cannot always be relied upon and can be very difficult and costly to enforce.
Increasingly, developers, owners, funders, and occupiers are turning to the security and reliability of inherent defects insurances.
What is machinery inherent defects insurance?
New buildings undergoing construction
'Shell and core' building refurbishments
Completed buildings less than two years old
Energy efficiency retrofits
Who could benefit from having machinery inherent defects insurance?
What mechanical and electrical services are covered by HSB Machinery Inherent Defects Insurance?
Installed services covered by HSB Machinery Inherent Defects Insurance include:
- Boilers, space heating, ventilation and air conditioning systems
- Lifts and escalators
- Building maintenance units
- Electrical distribution systems
- Equipment used for building security and environmental control
- Electrical and mechanical parts of water pumping, pressurisation and distribution systems
Additional cover is also available for the loss of rental income suffered as a result of a defect.
Technical audit
All projects insured on our policy are the subject of a technical audit during construction of the building, carried out by our highly-experienced engineers.
Designs and specifications are audited, and inspections take place throughout the installation period to ensure that quality is maintained.
Why consider HSB Machinery Inherent Defects Insurance?
Our underwriters and engineers have extensive experience in providing covers for plant and equipment in a vast array of applications and are recognised as experts in this field. Drawing on our considerable engineering expertise, we are able to provide tailored insurance products to meet the needs of developers, owners, funders and occupiers of new commercial buildings:
- Policy wordings specifically designed for mechanical and electrical services in new buildings
- Wordings designed with all interested parties in mind
- Loss of rent cover available on all policies
- Extensive expertise in building services technology
- Access to experienced mechanical and electrical engineers
- Access to specialist in-house claims handlers, and loss adjusters
UK-based arm of
HSB Group
The equipment breakdown insurance and inspection market leader since 1866.
Part of
Munich Re
A world leader in risk solutions, consistent risk management, and financial stability.
Rated A++ (Superior) by
A.M. Best Company
Financially strong and stable.
Member of the Institute of
Customer Service
Demonstrating our commitment to continually improving customer service performance and professionalism.
HSB is committed to providing a superior customer experience through our specialist claims service
Product documentation
Frequently asked questions
What is machinery inherent defects insurance?
Who could benefit from having HSB Machinery Inherent Defects Insurance?
Building developers, owners, funders, and occupiers of the following types of buildings could benefit from having HSB Machinery Inherent Defects Insurance:
- Commercial buildings
- Residential blocks
- Data centres
- Warehouses
- District heating installations
- Energy centres