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Strata Machinery Breakdown Insurance

Protect your building's essential plant from sudden mechanical and electrical failure. Lifts, HVAC, switchboards, and fire systems are expensive to repair and critical to building operations.

Plant

Protection

Sudden

Failure Cover

Thorough

Assessment

Recognition

Industry Awards

A lift motor replacement can cost $50,000 or more. A commercial HVAC compressor failure can exceed $30,000. Without machinery breakdown cover, the owners corporation pays out of pocket.

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Not Covered by Standard Building Insurance

Standard building cover responds to damage from fire, storm, and water. It doesn't cover mechanical or electrical failure that happens without an external cause. Machinery breakdown fills this gap for your building's essential plant.

Critical for Commercial Buildings

Commercial strata buildings rely heavily on building plant. Office buildings, retail centres, and mixed-use buildings all have significant plant that is expensive to replace.

WHY TANK INSURANCE

Why strata committees trust us with machinery breakdown cover

Machinery breakdown is often an afterthought in strata insurance. We treat it as essential cover and ensure the right plant is listed at the right values.

Building HVAC and mechanical plant on a commercial rooftop

01

Plant Audit

We help identify all mechanical and electrical plant that should be covered, ensuring nothing critical is missed from the machinery breakdown schedule.

02

Adequate Sum Insured

Replacement costs for building plant can be significant. We ensure the machinery breakdown limit reflects actual replacement costs, not depreciated book values.

03

Policy Inclusion Check

Some strata policies include machinery breakdown as standard. Others don't. We check every policy and add it where it's not automatically included.

04

Claims Management

When building plant fails, we manage the claim process. We've handled lift, HVAC, and switchboard claims and understand the assessment and settlement process.

RISK LANDSCAPE

Key Machinery Breakdown Risks in Strata Buildings

Commercial strata buildings depend on essential plant that can fail suddenly. These are the most common and costly failures.

Lift failure in multi-storey buildings causing tenant disruption and potential injury
HVAC system breakdown during extreme heat or cold affecting building occupancy
Electrical switchboard failure cutting power to multiple tenancies
Fire suppression system malfunction during a fire event
Escalator failure in retail and commercial complexes
Hot water system failure affecting common area bathrooms and amenities
Backup generator failure during a power outage leaving the building without emergency power
Building management system failure affecting security, lighting, and climate control

The cost of replacing a single lift motor or commercial HVAC compressor often exceeds the annual machinery breakdown premium many times over. This cover pays for itself when you need it.

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POLICY SCOPE

What Machinery Breakdown Insurance Covers

Machinery breakdown covers sudden and unforeseen mechanical or electrical failure of building plant owned by the owners corporation.

CNC laser cutting machine inside an industrial metal fabrication workshop
CNC laser cutting machine inside an industrial metal fabrication workshop

Usually Covered

✓ Lift motor burnout, mechanical failure, and control system faults
✓ HVAC compressor failure, refrigerant leaks, and control system faults
✓ Electrical switchboard failure, transformer burnout, and surge damage
✓ Fire pump and suppression system mechanical failure
✓ Escalator motor and drive system failure
✓ Hot water system and boiler failure

Not Typically Covered

✕ Gradual wear and tear, corrosion, or deterioration
✕ Damage covered by the standard building policy (fire, storm, water damage)
✕ Maintenance costs and routine servicing
✕ Tenant-owned equipment and machinery
✕ Cosmetic damage that doesn't affect function
✕ Equipment failure due to lack of maintenance or deliberate neglect

A well-maintained building with documented service records attracts better machinery breakdown terms. We advise committees on maintenance documentation that supports their insurance position.

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QUESTIONS

Strata Machinery Breakdown FAQs

Machinery breakdown insurance covers the sudden and unforeseen failure of mechanical and electrical plant in a strata building. This includes lifts, HVAC systems, switchboards, fire suppression systems, escalators, hot water systems, and other essential building plant. It covers repair or replacement costs that wouldn't be covered under the standard building section of the strata policy.
It depends on the insurer and policy wording. Some commercial strata policies include machinery breakdown as a standard section, while others offer it as an optional add-on at additional premium. We review every policy to ensure machinery breakdown is included and the limits are adequate for the building's plant.
The building section of a strata policy covers damage from insured events like fire, storm, and water damage. Machinery breakdown covers mechanical and electrical failure that isn't caused by an external event. For example, if a lift motor burns out due to an internal fault (not fire or water), that's a machinery breakdown claim, not a building claim.
No. Machinery breakdown covers sudden and unforeseen failure, not gradual wear and tear, corrosion, or maintenance issues. The owners corporation is responsible for maintaining building plant in good working order. Well-maintained equipment is less likely to fail and also helps secure better insurance terms.
The cost depends on the type, age, and value of building plant. Office buildings with multiple lifts, a commercial HVAC system, and escalators will pay more than industrial warehouses with minimal plant. It's typically a modest addition to the overall strata premium and is well worth the coverage given the cost of replacing major plant items.
All significant mechanical and electrical plant owned as common property by the owners corporation should be listed. This typically includes: lifts, escalators, HVAC systems, switchboards, fire pumps and suppression systems, hot water systems, backup generators, and building management systems. The strata committee's office bearers should ensure this schedule is reviewed annually. We help identify what should be included based on the building's plant.
Building mechanical equipment representing machinery breakdown insurance

Protect Your Building's Essential Plant

Machinery breakdown cover is essential for every commercial strata building with lifts, HVAC, or significant building plant. We ensure it's included and adequate.

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Expert Review: 20/02/2026

Verified by Tank Insurance Brokers

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