![I am buying expensive machinery. Should I take a fire policy on this machine?](http://media.assettype.com/outlookbusiness%2Fimport%2Foutlookmoney%2Fpublic%2Fuploads%2Farticle%2Fgallery%2F06646e23a07e884fb9f6a8f9471224de.gif?w=480&auto=format%2Ccompress&fit=max)
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.