THURSDAY, AUGUST 27, 2020
When insuring your business, you want to protect it in the face of numerous potential hazards. Beyond fires, theft or severe weather, a lot of other problems could arise that cause a halt in operations and a big financial loss. Even internal issues, such as equipment failures, might impact your bottom line. However, if you have equipment breakdown insurance within your commercial insurance portfolio, then you will have help in challenging situations like these. Let’s take a closer look at some of the losses that equipment breakdown coverage might apply. 
What does equipment breakdown insurance mean?
The machinery housed within your business is critical to its success. So, if something forces one of these items out of commission, then that could cause the business a big loss. Equipment breakdown insurance can help you avoid some of those losses.
Most business insurance covers damage to property from unexpected hazards like severe weather or fires. However, internal issues like power failures or machinery overheating could arise anytime. They might damage essential systems, from computers to cooking ranges, and cause the business to grind to a stop. Equipment breakdown insurance can pay for losses resulting from these problems.
When you experience an equipment breakdown scenario, a variety of costs might arise.
-
The equipment in question might need repairs or a total replacement.
-
Loss of the equipment might cause a slow-down or halt in operations. The business might face significant income losses as a result.
-
Damage might spread to other items or products.
With equipment breakdown coverage, your policy can help you recover these costs. The policy might apply to breakdowns in multiple internal systems, including items like:
So, suppose that your restaurant experiences a power surge. The power goes out, the air conditioning stops, ranges do not work and the refrigerator cannot preserve items. As a result, you likely cannot cook or serve customers. Your produce and meat stock might also go bad for lack of refrigeration. As a result, you could face a significant monetary loss.
Equipment breakdown insurance might cover the cost of repairing the systems damaged by the surge. It can also help you recover the inventory that spoiled. Furthermore, you might qualify for lost income assistance. It can help you avoid some of the monetary loss associated with the halt in operations. Keep in mind, however, that the policy won't pay for damage from normal wear & tear.
It’s easy to see how important it is to have equipment breakdown insurance for your business regardless of its shape, size or scope. Don’t hesitate to work with your insurance agent to determine the right coverage for you.
No Comments
Post a Comment |
|
Required
|
|
Required (Not Displayed)
|
|
Required
|
All comments are moderated and stripped of HTML.
|
|
|
|
|
|
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
you and the blog and website publisher.
|
Blog Archive
|