Equipment breakdown coverage is a wonderful investment that could help your business when things go wrong. All businesses have the equipment necessary for daily operations. What would happen if a sudden storm took your tools out of commission? Commerce could stall, putting you at a disadvantage. However, equipment breakdown coverage can tip the scales in your favor, even when lightning strikes.
How Does Equipment Breakdown Coverage Work?
Can equipment breakdown coverage help in case of severe weather? Yes — and it covers so much more.
Internal factors severely threaten expensive machinery, but they’re not always obvious. The following risks can do just as much damage to your equipment as a fire or other external factor:
- Operator error
- Power surges
- Motor burnout
- Electrical shorts
- Mechanical breakdowns
While these causes aren’t uncommon, most business insurance plans don’t cover them. Equipment breakdown coverage bridges this gap so you stay high and dry.
Who Needs This Kind of Insurance?
If your company uses machinery, you need a commercial property policy that covers breakdowns. Small businesses may be especially vulnerable since they have different resources than large corporations.
Of course, whether you decide to purchase this coverage comes down to risk versus cost. The following businesses may be at higher risk of storm damage or experience more severe repercussions from damaged tools:
- Restaurants
- Grocery stores
- Construction companies
- Internet technology firms
Equipment breakdown coverage extends to a wide variety of items, protecting every aspect of your business:
- Pressure equipment and boilers
- Manufacturing equipment, elevators, motors, generators, engines, and other mechanical equipment
- Refrigeration systems and air conditioners
- Electrical cables and panels, transformers, and other electrical equipment
- Fire alarms, computer systems, voice mail, security systems, phones, and other communication equipment
What Are the Benefits?
First and foremost, equipment breakdown insurance keeps you from paying out of pocket to get your business back on track. For example, it covers replacing or repairing damaged items, saving you thousands of dollars. Without this insurance, you would need to take funds from daily operations or go into debt, putting you in a precarious position.
Second, these policies help keep your business afloat during recovery. For example, the insurance company will repay you the value of inventory ruined directly due to the damage. Did your sprinkler system malfunction and drench your next shipment of books? You may get a payout to replace them.
Businesses also receive payments equal to their loss of income. If you have to shut down manufacturing or close your office, the policy covers the earnings you lost by doing so.
How Can You Find the Right Equipment Breakdown Coverage?
How can you find a stellar policy when there are so many choices? Your first step is identifying your needs. For example, are you most concerned with a low cost, or is customer service your top priority? Make a list of what you want from a policy and rank these factors from most important to least — doing so helps you identify deal-breakers immediately, saving you time and energy.
Next, don’t be afraid to get equipment breakdown coverage quotes from several sources before purchasing. Quotes let you straightforwardly compare prices and benefits, allowing you to make an objective decision.
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
