A comprehensive machinery insurance integrating property loss (Section I) from a sudden, accidental event to the machinery/electrical facilities of a power plant, factory or plant, and the resulting business-interruption loss (Section II).
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
A comprehensive machinery insurance integrating property loss (Section I) from a sudden, accidental event to the machinery/electrical facilities of a power plant, factory or plant, and the resulting business-interruption loss (Section II).
Accidental, sudden loss to the machinery itself during operation, shutdown or inspection.
Turnover fall and gross-profit loss as a direct result of property loss.
Machinery loss from typhoon, flood, lightning, earthquake can be extended.
Debris removal, special costs and additional-asset cover can be combined.
Solar, wind, cogeneration, biomass plants.
Steel, chemical, cement, semiconductor, display factories.
Refineries, LNG terminals, storage facilities.
Water-treatment, sewage-treatment, incineration.
| Solar plant (10MW) | Limits: Section I 10bn / Section II 3bn (BI 12 months) · key: natural disaster · electrical risk · BI extension |
|---|---|
| Wind plant (3MW × 5) | Limits: Section I 35bn / BI 8bn · key: main-bearing/gearbox breakdown extension |
| Chemical-plant machinery | Limits: Section I 50bn / BI 20bn · key: electrical/mechanical risk · BI |
Figures above are sum-insured (cover-limit) design examples, not premiums. (General industry example)
| Policy period | 1 year renewable or per project |
|---|---|
| Payment | Lump sum (annual) or instalments |
| Insurers | Chubb · DB · KB · Meritz · Hyundai |
| Turnaround | 5–10 business days (longer review for large facilities) |
| Channel | Individual consultation with our broker (010-5755-6465) |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; on this page, see the “Cover” tab(or the “Losses not covered” section) for the main exclusions. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Under Article 59-4(1) of the Income Tax Act (special tax credit), for protection-type insurance taken out by an employee only, a tax credit of 12% of the premium paid (capped at KRW 1 million per year) is available. Tax matters may change with amendment or repeal of the relevant tax law.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
Risk patterns that come up often in power/machinery operation — a five-scenario self-check
Typhoon, heavy snow and downpour are common causes of loss to solar modules, structures, inverters and wind equipment. Outdoor generation takes natural-disaster risk head on.
A power plant loses turnover for as long as it is stopped. Property loss (Section I) alone does not cover the lost income during the stoppage.
Core parts such as a wind main bearing or gearbox can take months to make, ship and repair. A design for a long stoppage is needed.
ESS/battery facilities are assessed separately in underwriting for their overheating/fire risk. Reviewing property loss and BI together is usual.
An accident at an off-site power facility, or loss at a key supplier/customer, that stops operation causes indirect BI. An off-site-power / supplier-customer extension review is needed.
At a solar plant, a downpour inundated the inverter and combiner box, stopping the facility for a long time. If the operator had taken out only Section I (property loss) of machinery comprehensive insurance, the repair/restoration cost of the inundated facility would be reviewable under the wording, but the lost turnover while the facility was stopped would not be covered. Had Section II (business-interruption loss) been taken too, the lost profit during the stoppage would be reviewed together within the policy limit. In a generation business where the stoppage loss exceeds the facility loss, missing the BI cover is the most commonly overlooked item at enrolment.
Source: (General industry example)
The wording and structure points decision-makers most often overlook
Section II is optional. With property loss only, the facility is restored but the lost turnover during the stoppage is not covered. For power facilities, designing the two Sections together is usual.
If the sum insured is below the facility's replacement value, proportional compensation can apply, paying only the insured ratio. Insuring on the replacement-value basis is the principle.
Indirect BI from an off-site power/transmission accident or a key supplier/customer's loss is not handled in base cover. An off-site-power clause and a supplier/customer extension should be reviewed.
The questions decision-makers ask most when considering machinery comprehensive insurance (CMI)
Where ordinary fire insurance is fire/explosion-centred, machinery comprehensive insurance broadly covers sudden, accidental events such as natural disaster, electrical risk and mechanical risk, and can combine the resulting business-interruption loss (Section II). It is a comprehensive design fitted to the risk of power and machinery facilities.
Section II is optional cover. But for power facilities a stoppage means a turnover stoppage, so designing property loss (Section I) and business-interruption loss (Section II) together is usual. The combination fitting the business structure should be reviewed at enrolment.
Property loss from natural disaster — fire, lightning, landslide, inundation — is among Section I's covered causes. But earthquake, eruption and tsunami are handled by stating them separately on the policy or via an earthquake-extension endorsement, so confirm in advance to match the site risk.
Fire is among Section I's covered causes. But ESS/lithium-battery facilities are assessed separately in underwriting given their risk profile, and the specific cover terms and acceptance are confirmed after underwriting.
No. Loss in the construction, assembly, installation and pre-performance-test stage is excluded here and is the area of construction (CAR) and erection (EAR) insurance. Machinery comprehensive insurance covers facility risk in the operation stage after completion and commissioning.
The insurer assesses it on the type and scale of the facility, the replacement value, the site conditions, natural-disaster exposure, past incident history and the Section combination taken. The exact premium and acceptance terms are confirmed after underwriting by insurers such as AIG, Chubb, DB, KB, Meritz and Hyundai.
