What you need to know about equipment breakdown coverage.
If your business relies on the use of specialized or expensive equipment, then stop for a moment and imagine what would happen if your equipment were to breakdown. If you could not afford to repair or replace it, then your business would suffer immensely. Not only would you miss deadlines and lose revenue, but your business relationships and reputation would be compromised as well. Your company might never recover from this blow, causing you to close your doors completely. While this is a grim scenario, there is a way to prevent it from becoming a reality. By securing the right equipment breakdown insurance, you can cover the cost of repairing or replacing your equipment if it suffers a mechanical breakdown or malfunction. Curious to learn more about this type of coverage? Then here’s what you need to know.
- What is equipment breakdown insurance?
As the name suggests, equipment breakdown insurance offers coverage to repair or replace your company’s equipment if it suffers an electrical or mechanical breakdown, motor burnout, boiler malfunction, and so on. In addition to repair expenses, equipment breakdown insurance can also cover business income and inventory losses that result from the breakdown. This type of insurance extends coverage to a wide array of equipment types, such as mechanical, electrical, heating and cooling, and computers and networks.
- How is equipment breakdown insurance different from commercial property insurance?
Many business owners believe that they don’t need equipment breakdown coverage because they already have commercial property insurance in place. However, it’s important to understand that these two types of coverage are fundamentally different. While commercial property insurance will offer coverage for your business’s equipment, you can only access this coverage if your equipment is damaged by fire, storm damage, or other covered perils. In contrast, equipment breakdown insurance offers coverage for the damages caused by issues with the machinery. A good way to think about it is commercial property insurance handles the damage caused by external threats while equipment breakdown handles the damage caused by internal malfunctions.
This is what equipment breakdown coverage can do for your business. Do you need help securing the right insurance protection for all your business’s needs? If so, then contact the experts at Robert J. Los Insurance Agency in Hamburg, New York. We are ready to assist you with all your commercial coverage needs today.