Planned Maintenance Programme
The planned maintenance programme attribute records whether an insured operates a documented, scheduled preventive maintenance regime for its machinery and equipment, as opposed to purely reactive repair, which is a key predictor of breakdown frequency.
- Category
- Operations
- Data type
- Yes/No
- Risk drivers
- Frequency, Severity
- Underwriting impact
- Premium, Deductible, Condition/Warranty
Typical proposal-form questions
- Does the insured operate a documented, scheduled preventive maintenance programme for its critical machinery?
- Are maintenance intervals based on manufacturer recommendations, condition-monitoring data, or a fixed calendar schedule?
- Is maintenance performed by in-house staff, the original equipment manufacturer, or third-party contractors, and are records retained?
Evidence
- Maintenance schedule and logbook
- Computerised maintenance management system (CMMS) export
- Manufacturer service contract
Why it matters for underwriting
Whether an insured runs a planned, preventive maintenance programme rather than repairing machinery only after it fails is one of the clearest behavioural signals of overall risk culture and directly affects breakdown frequency. A documented programme catches wear, corrosion and misalignment before they cause a failure, whereas run-to-failure maintenance concentrates losses at unpredictable moments and tends to produce more severe consequential damage, since a failing component is often allowed to run until it fails outright rather than being replaced pre-emptively. Underwriters treat the presence of a genuine planned programme as a strong mitigating factor for both machinery breakdown and business interruption exposure.
Capturing the attribute and evidence
Proposal forms ask a straightforward yes/no question on whether a documented, scheduled maintenance programme exists, followed by clarifying questions on whether intervals are set by manufacturer recommendations, condition data or fixed calendar rules, and who performs the work. Underwriters substantiate the declared answer with the maintenance schedule and logbook, an export from a computerised maintenance management system (CMMS) where one is in use, and any service contracts with the original equipment manufacturer or third-party maintenance providers.
Effect on coverage, premium and conditions
A credible, evidenced planned maintenance programme supports more favourable machinery breakdown and business interruption premium rates and can justify lower deductibles. The absence of a formal programme, or a programme that exists on paper but is not evidenced by logs, commonly results in premium loading, higher deductibles for breakdown losses, or a maintenance warranty being attached to the policy as a condition of cover.
Mitigation measures
Insureds without a mature programme are typically advised to introduce a documented maintenance schedule aligned with manufacturer recommendations, adopt a CMMS to track completion and history, and progressively shift from purely calendar-based to condition-based maintenance for critical machinery to catch developing faults earlier.
Standards and codes
- IEC/ISO 31010:2019 – Risk assessment techniques