When we take our equipment for granted, a lot of things might happen. A power surge could damage your computer work, or an employee error could damage your only production machine, your electrical system could short circuit, causing your business to shut down. Thus, the importance of equipment breakdown insurance comes in.
What does equipment breakdown insurance cover?
Equipment breakdown insurance is also known as “boiler” and “machinery” insurance. It covers loss due to mechanical or electrical breakdown of nearly any type of equipment, including photocopiers and computers. The coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown.
What if you don’t own your building?
Even if you don’t own the building, and the owner is responsible for electrical repairs of the establishment, you still need equipment breakdown insurance to protect your income in case of emergency. For instance, there is an electrical panel short out that disables you to use any of the electric dependent appliances, causing you a big problem to operate your business. Equipment breakdown insurance will help you pay for the lost business income.
What if an equipment problem off site impacts business?
Problems off-site happen sometimes. Most business transactions these days are done online. Equipment breakdown coverage helps pay for lost business income due to website or connection interruption.
Does property insurance or warranties cover damage to equipment?
The cause of many equipment breakdowns is usually due to operator error, and most standard property insurance doesn’t cover equipment breakdown. And warranties are restrictive, typically only covering new equipment for a determined span of time.
How much equipment insurance should you buy?
It is important to look beyond the appearance of the equipment to determine the amounts and limits of coverage. Also try to consider the situations that may happen. Lastly, seeing how the equipment breakdown losses can actually add up to a better idea on how much equipment insurance to buy.
To help you more with your equipment breakdown insurance, please call Valencia Insurance at (772) 344-8899. We provide quality insurance to our clients. You may get a free quote from us by clicking here.