Dealing with equipment failure could mean a delay in project completion, a loss of client trust, and costly repair bills. Depending on the industry, equipment failure could mean a production line shuts down, an excavator lies idle, or a computer program isn’t performing the correct analysis. For those who work in engineering, the possibilities of equipment breakdown or failure are plenty.
Causes of Failure
There are ample reasons why a piece of equipment or machinery may fail, and while preventative maintenance may reduce the risk of a breakdown, these activities aren’t foolproof. Engineering equipment depends on the specialization of the engineer, as there are structural, mechanical, civil, chemical, and electrical. Within each of these operations is a different set of machines or tools needed to complete a project.
These are some of the most common reasons why equipment fails:
- User error or improper operation
- Failing to proactively maintenance and attend to equipment
- Conducting too much maintenance without the proper skill levels
- Harsh or excessive operating conditions
- Improper or little continuous monitoring of equipment
- Lack of thorough training for operation and repair
Consequences of Failure
Engineering projects involve electrical wiring, building construction, bridge or infrastructure development, and much more. When equipment fails, the project is likely to see a setback. However, failures of things like electrical equipment could lead to a fire or other damages. Malfunctions in heavy machinery could cause operator or bystander injuries, and a machine that breaks down or functions erratically could lead to property damage.
In addition to the physical losses that can take place, a company can find its reputation on the line. Not only will making repairs or finding a replacement machine take time, but it can also be a big expense that a company isn’t able to handle. The loss of business, with both current and future projects from a lack of operable machinery, leads to a loss in revenue and a damaged reputation.
Prevention of Significant Loss From Failure
One key way an engineer is protected from significant losses when equipment failure occurs is through Ohio equipment breakdown insurance. A comprehensive insurance policy will address the key risks that arise from unexpected breakdowns, and coverage is generally tailored to the specific risks associated with the type of engineering services provided. Equipment breakdown could include assistance with:
- Computers or telephones
- Security systems
- Manufacturing equipment
- Mechanical systems
- Heating and ventilation systems
The coverage will usually provide funds for the costs of covered incident repairs, property damage liabilities, lost business income while the equipment is down, and the costs of any inspections conducted to prevent potential breakdowns. This insurance isn’t applicable in cases of normal wear and tear on machinery or equipment.
Purchasing insurance coverage and maintaining best practices with equipment operation can reduce the risk of serious financial loss from equipment failure. Check with an agent about your coverage options.
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.
