Commercial insurance can be overwhelming because there are so many coverage options to consider when protecting your business. Equipment breakdown insurance is vital, and we’ve explained why below.
Equipment breakdown insurance is a commercial policy intended to protect a company’s mechanical, electrical, and computer equipment from unexpected breakdowns. Equipment breakdown insurance helps businesses recoup financial losses related to property damage, business interruption, and spoilage.
Simple (But Important) Things to Remember About Equipment Breakdown Insurance
There Are Five Common Types of Equipment Breakdowns
- air conditioning and refrigeration units
- boilers and pressure vessels
- computers and communication equipment
- electrical systems
- mechanical systems
The Four Major Benefits of Equipment Breakdown Insurance
#1 Repair Cost Coverage
Following an equipment failure, organizations may pay thousands of dollars just to get operations up and running again. An equipment breakdown policy can help by reimbursing organizations for the cost to repair or replace damaged equipment due to an accident.
#2 Expediting Expenses
Repairing complex equipment in a hurry can be an expensive endeavor. Most of these policies cover any expenses needed to speed up the repair or replacement of damaged property, including the cost of temporary repairs.
#3 Protection Against Business Interruptions
Without a doubt, any equipment failure disrupts business, and in some instances, these disruptions are quantifiable, leading to lost revenue and productivity. Equipment breakdown insurance covers some of these costs, including income lost because of a covered accident. This protection is in effect until the equipment is repaired or replaced.
#4 Coverage for Perishable Goods
Following an equipment failure, food-related businesses experience some of the most direct losses. Food industry equipment is not only expensive to repair and replace, but businesses can lose thousands of dollars worth of product if a freezer or refrigerator fails. Equipment breakdown insurance provides adequate protection and covers food spoilage, manufactured goods, or other perishable items after a covered incident.