What is the difference between machinery insurance and machinery breakdown insurance in Germany?
In short
What is the difference? In Germany, between machinery insurance and machinery breakdown insurance it is mostly the name: breakdown is the older term. Both pay for sudden damage from inside, such as operator error, short circuit or material defects. The real difference is in the policy: for a mini excavator, breakdown plus accident cover costs about 25 percent more than accident cover alone.
Published premium examples from German brokers show what the step from accident cover to breakdown plus accident costs. Gross means including 19 percent insurance tax.
Same mini excavator, machinery and accident cover, deductible 500 euros
455.53 euros gross a year
Forklift, sum insured 22,500 euros, deductible 250 euros
238 euros a year
Hydraulic excavator, sum insured 133,000 euros, deductible 250 euros
1,424.43 euros a year
As of October 2026, from examples published by individual brokers.
For fixed machinery there are no reliable public benchmarks;
the premium is known only once we obtain a quote for you.
Worked example
Same excavator, two policies, one mistake
An operator swings the mini excavator into a steel beam with the arm raised and the hydraulic cylinder tears. Repair 6,000 euros, deductible 500 euros.
Accident only under ABG, premium 365.81 euros
external impact, 5,500 euros paid
Same cylinder bursts from a material defect
accident cover pays nothing
Machinery and accident under ABMG, premium 455.53 euros
both cases covered, 5,500 euros each
Extra premium for breakdown cover
about 90 euros a year
About 90 euros a year decide whether internal damage is paid with 5,500 euros or not at all.
A name from the days when machines simply broke
Machinery breakdown insurance (Maschinenbruchversicherung) describes where the line started: a shaft snaps, a gear shatters, a motor burns out. Today the German insurers association calls its model wordings machinery insurance (Maschinenversicherung), because far more than breakage is covered, including short circuit, operator error and sabotage.
Both words are still in daily use. Many companies, lessors and brokers say Maschinenbruch, while the policy says Maschinenversicherung. For your cover, the name makes no difference; the wording and clauses do.
Where the real differences between machinery policies are
Differences between two machinery or machinery breakdown policies come from the wording and the add-ons. A fixed press is insured under AMB, an excavator or forklift under ABMG. If you choose ABG for mobile equipment, you only have accident cover without breakdown.
Building block
What it pays
Always part of breakdown cover?
Machinery insurance under AMB
internal damage to stationary machines
yes, that is the core
Machinery and accident cover under ABMG
breakdown and accidents of mobile machines
yes, for mobile machines
Accident only under ABG
only external accidents to construction equipment
no, no breakdown cover
Theft
loss of mobile machines
only if agreed
Fire and explosion
fire damage to the machine
often excluded for fixed plant
Machinery business interruption
lost profit during repairs
no, separate policy
The line that really matters: contents insurance
More important than machinery versus machinery breakdown insurance is the boundary to business contents insurance (Inhaltsversicherung). Contents insurance only pays named perils such as fire, water, storm and burglary. A gearbox destroyed by operator error is not covered there, but it is under machinery insurance.
Fire is the classic dispute between the two. Agree in writing which policy pays if a short circuit inside the machine first damages it and then starts a fire.
What neither machinery nor breakdown insurance pays
Neither covers wear and tear, the predictable ageing of bearings, blades or hoses. Tools, moulds and consumables such as oil are usually excluded too.
Downtime itself is not covered by either. That needs machinery business interruption insurance (Maschinen-Betriebsunterbrechungsversicherung), which pays lost profit after an insured breakdown.
When you do not need machinery breakdown insurance
An office with computers and printers is better served by electronics insurance (Elektronikversicherung). If you only have a few cheap machines you could replace from cash flow, you can do without machinery insurance.
New machines under warranty still benefit: the manufacturer's warranty covers factory defects, not operator error on day two.
Step by step
Check which wording applies in your policy: AMB, ABMG or ABG.
Check whether internal breakdown is covered or only accidents.
Clarify fire, theft and hire costs as add-ons.
Agree in writing where contents and electronics insurance end.
For bottleneck machines, also consider machinery business interruption.
Checklist
Wording named and suitable for the machine
Operator error and negligence included
ABMG rather than ABG for mobile equipment
New replacement value as sum insured with underinsurance waiver
Clear rule on fire between machinery and contents insurance
Common mistakes
Thinking breakdown and machinery insurance are two policies and paying twice
Insuring an excavator under accident cover only
Assuming contents insurance covers a machine breakdown
Believing lost production is covered
Questions and answers
Frequently asked
Is Maschinenbruchversicherung the same as Maschinenversicherung?
Essentially yes.
Maschinenbruch is the older name, Maschinenversicherung the current one.
What is covered depends on the wording and clauses.
What is the difference from machinery accident cover (Maschinenkasko)?
Accident cover under ABG only pays external damage such as tipping over or collision.
Machinery insurance under ABMG also pays internal damage such as operator error and material
defects.
Does machinery breakdown insurance cover wear and tear?
No.
Only sudden damage is covered.
If a worn part breaks and destroys other parts, that consequential damage is covered.
Do I need machinery insurance if I already have contents insurance?
Yes, if your business depends on machines.
Contents insurance pays fire, water, storm and burglary, not internal breakdown.
Is lost production covered by machinery breakdown insurance?
No.
That needs a separate machinery business interruption policy.
