Companies need working equipment to operate efficiently and generate revenue. In fact, many organizations rely exclusively on a few pieces of specialized equipment to run their entire business. Following a breakdown, major losses can occur and many organizations turn to equipment breakdown insurance.
This is one of the most important parts of a manufacturer’s protection plan, as we see more claims from equipment breakdowns than other risks such as fire or water damage.
Equipment breakdown coverage is designed to protect a company’s mechanical, electrical, refrigeration, production, and computer equipment from unexpected breakdowns. These policies also provide coverage for explosion and electrical problems (arcing, sparking, surge) as these perils are not covered by your regular property insurance. An interruption of business usually goes hand in hand with equipment failure so it’s critical that these risks are specifically addressed.
Four Benefits of Equipment Breakdown Insurance
Do you know what you would do if your equipment unexpectedly broke down? Equipment breakdown insurance is available to help organizations with the cost to replace or repair damaged equipment in result of an accident. Consider some of the many benefits of equipment breakdown insurance:
Repair Cost Coverage
Following an equipment breakdown, organizations may have to pay thousands just to get their business up and running again. Equipment breakdown insurance can help soften the blow, reimbursing organizations for the cost to repair or replace damaged equipment due to an accident.
Repairing complex equipment in a hurry can be an expensive endeavor. Most equipment breakdown insurance policies cover any expenses needed to speed up the repair or replacement of damaged property, including the cost of temporary repairs.
Protection Against Business Interruptions
In virtually all cases, an equipment failure disrupts a business. In some instances, these disruptions are quantifiable, leading to lost revenue and productivity. Equipment breakdown insurance covers some of these costs, including income lost as a result of a covered accident. What’s more, this protection is in effect until the equipment is repaired or replaced.
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 business can lose thousands of dollars’ worth of product if a freezer or refrigerator fails. Thankfully, equipment breakdown insurance provides adequate protection and covers food spoilage, manufactured goods, or other perishable items after a covered incident.
Learn More About Equipment Breakdown Insurance
Contact Aaron MacFarlane, team leader of Manutech Advantage, industry specialists helping manufacturers with risk management and business consultation. Phone: 1-800-661-1518 | Email: firstname.lastname@example.org | LinkedIn: Lawrie Insurance Group – Manufacturing Specialty Group.
Ranked in the top 5% of independent brokerages in Canada, Lawrie Insurance Group is a privately owned and operated insurance brokerage with over 100 employees specializing in all areas of personal and corporate property/casualty insurance, employee benefits, financial services, and group retirement products.