Benefits of Equipment Breakdown Insurance
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, 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, 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.
Is Your Business Prepared For Equipment Breakdown?
This is one of the most important parts of a manufacturer’s protection, as we see more claims from equipment breakdowns than other risks such as fire or water damage.
or call 1-800-661-1518
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.
Expediting expenses. 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. Virtually in 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.
Want to Learn More About Equipment Breakdown Insurance?
Contact Aaron MacFarlane team leader of Manutech Advantage, industry specialists helping manufacturers with risk management and business consultation.
Call 1-800-661-1518 ext.1391 or email firstname.lastname@example.org.