Business owners must consider the myriad of possibilities that come with running a company, including what could go wrong. Businesses that rely on machinery and equipment, in particular, need to think about avoiding a mechanical or electrical breakdown, among other possibilities. For this reason, securing equipment breakdown insurance to avoid losses is a must.
Equipment breakdowns can put a halt to your business operations, as these can eat into your inventory and take time to repair or replace. After all the work you put into setting up your business, it would be a shame to see it all go to waste because of a mechanical breakdown, power surge, or any other event that leads to losses.
To protect your equipment, operations, and overall business, get equipment breakdown insurance.
Equipment breakdowns can lead to losses in all forms. It could cause property damage and cost businesses tens of thousands of dollars, together with the possible moratorium on regular operations. To repair or replace big-ticket items like equipment, air conditioning, boiler and machinery, and others, you will have to shell out large sums of money that you may not be able to afford.
Equipment breakdown coverage is a form of commercial insurance that helps you prepare for such events, as it can absorb the cost to repair equipment damage due to mechanical or electrical reasons. Moreover, it can provide you with business income, as well as help pay for the funds lost during the period your electrical equipment, property, and products were compromised.
Equipment breakdown coverage is not confined to industrial machinery, but will also protect your online operations on business computers and other electrical systems. It extends to include heating and ventilation items, refrigeration and cooling systems, telephones, security systems, components of mechanical systems, escalators, elevators, and other devices.
Many people may question the similarity between equipment breakdown insurance and boiler and machinery insurance. The former type of coverage is newer, given the widening range of equipment businesses now use. Equipment breakdown coverage is specialized and specifically designed to protect all these newer electrical devices as well.
Additionally, an insurance policy for equipment breakdown surpasses commercial property insurance. You might think that commercial property insurance is sufficient, but this is catered to cover damages incurred by external forces and disasters. Equipment breakdown coverage is focused on internal events, ranging from a mechanical breakdown to a power surge, electrical short, and other errors.
Depending on the insurance company, costs of equipment breakdown insurance differ. As a business owner, you may have already spoken to an insurance company or agent about a Business Owner's Policy (BOP). In many cases, you can inquire if the insurance policy can extend to include coverage for breakdown insurance equipment as an added premium.
An insurance policy for equipment breakdowns may be pegged at an estimated $800 annually, but all this will depend on whether you get this as a standalone policy or customize it as an add-on to other types of insurance coverage. Prices of this specialized policy may also depend on the size of your business, your industry, types of equipment, and annual income.
When selecting an agent or company best suited for your business, take time to shop around. Get a quote from numerous providers, and narrow down your selection of policies from here. You can make your decision based on factors such as user ratings, customizable options, customer service, history, and financial strength.
Rest assured, there is a provider out there who can address your unique business needs and alleviate the pressure of worrying about power surges, equipment repair or replacement, and the skyrocketing cost to repair.
It is important to note that although damage to computer equipment will be protected by this type of policy, it will not cover software—thus posing the need for cyber liability insurance. While equipment and machinery experience wear and tear over time, poor maintenance will not qualify for coverage. Some equipment may also be so old, that it can no longer be replaced by an insurance provider.
You must also remember your policy limit. If you exceed your coverage limit for a certain claim, you may have to pay out of your pocket for the rest of it. Speaking directly with an insurance company about your chosen policies can help you understand things like the extent of your coverage.
As a business owner, you have to be prepared for the worst. Investing in equipment breakdown insurance can help you soften the blow of losses that occur due to damaged tools, devices, and equipment. Equipment breakdown coverage can relieve you of unnecessary stress and additional costs, and teach you that preparing ahead can be all worthwhile.
While costs for equipment breakdown coverage can be around $800 annually, all this will depend on your chosen provider and policy. Some policies may standalone, while others are offered as add-ons. You will also need to factor in your business size and industry, income, and the types of equipment used.
All businesses may experience growing pains and can do with any advice they can get. Have a look at these additional resources for your other business needs.
The Balance Small Business covers a wide array of topics that any aspiring entrepreneur may benefit from. They have several discussions on business or commercial insurance and can help you understand the importance of equipment breakdown coverage as well.
Covering several different industries, Fit Small Business dispenses advice every company and niche can resonate with. With actionable tips and information on relevant business considerations such as insurance, you know that you are in good hands.
Investing in business insurance is always a good idea. For your peace of mind, equipment breakdown insurance can guarantee that you will be able to run your company and operations knowing that potential damages will be taken care of.
Assured Standard is here to help. If you want to learn more about commercial insurance and to get the best recommendations suited for your business, contact Assured Standard today!
