As a business owner, you learn to expect and prepare for the unexpected and that includes equipment breakdown. Likewise, a successful business requires the ability to make fast decisions and adjustments during challenging circumstances. One of the worst things to experience is a sudden or accidental equipment breakdown that is critical to your operations.
If you own or operate a business, you need equipment breakdown insurance. Moreover, this policy protects you against financial losses if an equipment malfunction interrupts your business practices. Find out more about this insurance option and why it’s necessary.
What Is Equipment Breakdown Coverage On a Business Policy?
Equipment breakdown insurance helps to cover the costs your business incurs when vital equipment is accidentally damaged or stops working. Companies rely heavily on all types of equipment. When you run into problems, it could bring your entire operation to a halt. It leads to stalled production and loss of income.
Insurance protects you from these types of losses. It also helps to pay for temporary replacements so you can get your business running again as soon as possible. Other covered items include the repair and permanent replacement of equipment and even damaged inventory or product spoilage resulting from the incident.
Standard machinery includes manufacturing equipment, industrial refrigerators, kitchen equipment, and computers. The right insurance policy could also pay for the cost of labor to have repairs completed.
Why Is Equipment Breakdown Coverage Important?
Depending on the nature of your business, equipment damage can completely disrupt your ability to operate. Restaurants rely on refrigerators to keep food fresh. If that refrigerator breaks down, you lose the contents and the revenue from customers who can’t order dishes because the ingredients are spoiled.
Equipment breakdown policies cover damage from power surges and electrical problems. These instances can affect everything from your computers and phones to your heating system to mechanical equipment. There are limits and exclusions that you need to be aware of. This coverage does not apply to software, ordinary wear, or destruction caused by natural disasters.
Insurance policies do not typically cover damage to equipment. Then, you can purchase this coverage as a standalone policy or include it with your Business Owners Policy or Commercial Package Policy. The age and value of your equipment, chosen deductible, and coverage amount all affect the cost of your policy.
You must carry the correct types and amounts of insurance coverage for your business. No one wants to think about an equipment malfunction’s potential consequences and hardships. However, taking proactive steps to cover your business gives you the tools and resources to make the best of the situation and recover quickly, without undue financial difficulties.
About Provident Protection Plus
At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 60 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.