There are many things that go through the minds of a business owner on a daily basis. Can our expenses be covered for the month? How can we generate new business? One of the last things an owner wants to consider is what happens if my equipment breaks down.
What Is Equipment Insurance
Equipment insurance is also known as commercial property insurance. The purpose of equipment insurance is to protect the equipment that your business utilizes, the contents inside of your building, and the entire building in general. The types of things that equipment insurance usually covers are tools, furniture, and inventory. Depending on the type of equipment insurance that a business gets, there are other items that can be covered as well such as fencing, landscaping, and signage. If a business’s equipment is damaged by external sources such as floods, theft, vandalism, and severe weather, these things are all covered in the policy.
What Is Machinery And Equipment Insurance
It is smart for any business that uses any type of equipment that is electrical, mechanical, or pressurized to have more than property insurance. The reason why is because if one of these things fails and the insurance doesn’t cover the repairs, this can cause a business to cease and lose customers. The proper type of insurance that these types of businesses should be getting is called machinery and equipment insurance. Machinery and equipment insurance is also known as equipment breakdown coverage. When a business has machinery and equipment insurance, if a machine that is vital to keeping the company thriving breaks down, they will have the resources to make these unforeseen repairs and keep their business running at full operation. The types of things that are covered under machinery and equipment insurance are refrigeration units, transformers, air conditioning units, production machinery, motors, boilers, and electric panels.
How Does Machinery And Equipment Insurance Coverage Work
The way that machinery and equipment insurance works is that the business is reimbursed for any repairs or replacement of equipment that is covered under the policy. The repairs or replacement of the equipment must be caused by accidental forces. If the equipment is damaged just by deterioration, erosion, corrosion, or normal wear and tear these types of repairs are not covered under the policy. If the business is reimbursed for any equipment issues, the policy will also cover other expenses that the business may have accumulated in relation to the malfunction of the equipment. These other expenses may be in the form of losing business because the equipment breakdown stops the company from fulfilling customer orders. Or it can be an expense such as having to rent another machine like the one the company was using until the machine is replaced in order to keep the company running smoothly. All of these types of expenses will be reimbursed if a company has machinery and equipment insurance.
Machinery and equipment insurance is definitely needed for small and medium-sized businesses. This type of insurance not only protects the equipment but it actually protects the business as a whole. The reason why is because most small to medium-sized businesses utilize some type of equipment to create, manufacture, or produce goods. If an expensive piece of machinery fails that a small or medium business has made an investment in, this could be costly in many different ways. What machinery and equipment insurance does is that it ensures that the business can keep its equipment functioning efficiently and fluently so that the business will not go out of business because of unexpected repairs or replacement of machinery due to accidental causes.
If you need guidance and assistance as to the best choices for protecting your business’ equipment, contact us at 772-287-3625