No matter how big or small your business might be, it might require a significant amount of equipment to run. The equipment in your business might be computers, refrigeration systems, compactors or other machinery. It can even include the air conditioning, electrical or furnace systems that you must use to keep the space inhabitable.
All your equipment is going to cost money both when you buy it and when you need to service or make repairs to it. Equipment breakdown insurance can therefore help you instrumentally in managing the ramification of sudden failures in your systems. It’s coverage that you should review on a routine basis.
What Does Equipment Breakdown Insurance Cover?
You never know when an accident might occur in your business that might damage your equipment. For example, a severe weather event might cause a power surge. The motor on a piece of machinery might overheat and burn out, or a short circuit might suddenly render the system useless. Because of this failure, you might have to halt your operations until repairs can occur.
Not only might this equipment breakdown cover you to make the necessary repairs to damaged items, but also it can help you cover income lost in the interval. After all, when an item fails, your ability to do your work might halt too, and therefore your stream of money might stop. Plus, some policies will even cover liability costs that arise because someone else alleges that an equipment breakdown harmed them.
When Will Your Policy Pay for Damage?
Under an equipment breakdown policy, not all forms of equipment failures will have coverage. After all, like most insurance plans, coverage will only apply for damage done by unexpected or unavoidable accidents. Therefore, if a piece of machinery fails due to lack of maintenance or clear neglect, then your plan might not cover your losses.
When Should I Upgrade My Equipment Breakdown Plan?
As your business grows and changes, the equipment breakdown coverage that you bought initially might no longer prove adequate to cover your losses. If you have added more machinery or specialized equipment to your business, you might need to increase your coverage to your benefit. After all, the more equipment you have, and the more unique it is, the more coverage you might need.
To land on the policy that is best for you, it’s best to inventory your equipment every few years. Make note of its age, purpose and the amount it cost you to buy it. This can help you determine how to ask your agent to tailor your policy benefits.
Also keep records of all repairs that you have made to the systems over the years. That way, if you do have a sudden breakdown, then you’ll have better evidence to prove that you did all you could to prevent it in the first place.