What Is Equipment Breakdown Coverage?
The unplanned failures of your company’s computers, electrical systems, production equipment, and other property are covered by equipment breakdown insurance. It covers losses like power surges, air pressure or vacuum loss, short circuits, and other occurrences frequently not covered by commercial property insurance.
What Equipment Breakdown Insurance Covers?
Equipment breakdown insurance frequently covers the following five types of machinery:
- Mechanical covers elevators, water pumps, motors, engines, generators, and specialized production and manufacturing machinery.
- Electrical, which involves wires, electrical panels, and transformers.
- Computers and communications include voice mail, security, fire alarm systems, and computer and phone systems.
- Refrigeration and air conditioning units
- Pressure vessels and equipment
Exclusion in Equipment Breakdown Coverage
Equipment breakdown insurance has exclusions, just like any business insurance policy. Here are some instances of what it won’t cover:
- Software systems are not covered. It is recommended that you purchase cyber liability insurance to protect software.
- Equipment breakdown insurance does not cover equipment failures brought on by the normal wear and tear that comes with age.
- Equipment failures brought on by fires, storms, explosions, and other natural disasters are covered by your business property insurance or specialist insurance, such as flood insurance.
Advantages of Equipment Breakdown Insurance
The business owner is assisted in overcoming the losses by receiving payment of the insured amount for the machinery and insured components. Additionally, it safeguards extra-covered elements like air freight, customs duties, and labor costs, among others. Some insurance providers also provide business interruption coverage under the policy and provide policyholders discounts to make up for business losses incurred when the machinery wasn’t running. Moreover, insurance companies provide great customer support options to machinery owners, and the process of claims is easy and transparent. Third-party coverage is also included in some of the policies.
Isn’t My Commercial Property Insurance Supposed to Cover Equipment?
Damages brought on by covered external causes, such as a fire, are covered by your commercial property insurance. Damages from covered internal forces, such as power surges, electrical shorts, mechanical breakdowns, motor burnout, or operator error, are covered by equipment breakdown insurance.
Cost of Coverage
Requesting quotes from several insurance providers is the most effective way to determine the exact cost of equipment breakdown insurance. The price of your insurance will depend on these things.
Choose Steve Wilk Insurance for your Business needs
Insurance for business equipment might not be an obligation. However, if the equipment malfunctions, you risk losing clients, productivity, and money. By looking honestly at how things can add up, you can better understand how much coverage you might need. With Steve Wilk Insurance, you can safeguard your business and your assets. Contact us right away to learn more.