Claims Lab
Machinery Breakdown
Hypothetical training case
A compressor fails after deteriorating performance
Was there a sudden insured breakdown or excluded wear, deterioration, and known damage?
Incident
A production compressor suffers internal damage after months of rising vibration readings and deferred maintenance.
Coverage question
Was there a sudden insured breakdown or excluded wear, deterioration, and known damage?
Relevant clause
Definition of breakdown; wear-and-tear, gradual-deterioration, maintenance, and known-defect provisions.
Insurer argument
The failure developed gradually and warnings were known, so the loss was foreseeable and maintenance-related.
Insured argument
A distinct sudden mechanical event caused accidental physical damage, while deterioration should apply only to the worn component—not all resulting damage.
Indicative analysis
Engineering evidence is decisive. Failed parts, alarms, vibration trends, service records, operating data, and an independent root-cause report may separate excluded deterioration from a sudden event and resulting damage.
Practical lesson
Preserve components, avoid destructive repair before inspection, notify promptly, and keep maintenance and condition-monitoring records claim-ready.