Desmond Insurance Blog
A business insurance policy may include optional equipment breakdown coverage. It may assist with repairing or replacing damaged equipment following a covered incident. And you will be reading more about that here in this article.
Equipment breakdown insurance may assist with covering equipment that is critical to the operation of your business, such as boilers and machines, as well as office air conditioning, computers, and security systems.
What Does Equipment Breakdown Insurance Cover?
Covered incidents also include power failures, short circuits, mechanical breakdowns, or motor burnouts, depending on your coverage. Coverage may also assist in the replacement of perishable products.
For instance, if a refrigerator at your food business fails, equipment breakdown coverage can assist with the expenses of replacing the damaged food. Below is a list of other incidents covered by this plan.
Temporary Or Rush Repairs
According to the National Association of Insurance Commissioners (NAIC), this coverage may also protect you against the expense of making immediate repairs to your equipment.
This plan also covers the additional cost of speeding up the repairs. Equipment breakdown coverage can assist in reducing the amount of time a firm is forced to close due to equipment failure.
Lost Business Income
If vital equipment fails and you cannot do business as usual, equipment breakdown coverage can help pay for lost company income. According to the International Risk Management Institute (IRMI), a claim for loss of company revenue must be adequately documented.
Additionally, if an equipment breakdown disrupts your firm, that disruption must usually last for a certain time before lost income coverage kicks in.
Property Damage Liability
According to the NAIC, equipment breakdown coverage may give liability protection if a breakdown or accident causes injury to others.
For example, if a piece of equipment malfunctions and causes damage to someone else's property, equipment breakdown coverage may shield you against liability expenses incurred by the owner of that property.
The cost of obligatory inspections of important equipment may be covered. A comprehensive inspection may aid in the prevention of issues.
To determine what precise safeguards your business equipment breakdown coverage offers, thoroughly read your policy or contact your insurance representative.
According to the Insurance Information Institute, this insurance plan does not normally cover normal wear and tear on equipment. If your equipment fails due to poor maintenance or is just old and has to be replaced, your insurance will most likely not cover the expense.
Also, if your business might suffer if your equipment fails, this supplementary coverage could be a good fit. A business insurance agent may explain what your policy covers and whether your company might benefit from extra safeguards such as equipment breakdown coverage.
At Desmond Insurance, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (859) 491-5100 or Click Here to request a free quote. The coverage discussed in this article is not guaranteed. Please call our agents, we are happy to help you learn more about your plan and make sure you have the coverage you need.