Understanding Equipment Breakdown Coverage

Eventually, your business's equipment will break down. Equipment breakdown coverage can redefine your business insurance coverage. It can assure you stay prepared in the face of disaster.

If you don't protect your equipment, your operations might grind to a halt. If you’re buying business insurance, it might be time to boost your equipment coverage.

Traditional Equipment Breakdowns
Every piece of business equipment, from computers to a toaster oven, has value. Bad weather, electrical surges and bad wiring can result in equipment breakdowns. Breakdowns are more than inconvenient. They’re have the potential to create excessive damage to a business. They also cost a lot of money, productivity and time.

Fortunately, you can purchase traditional equipment breakdown coverage. While sometimes broad, traditional equipment breakdown coverage can protect you against:

Power surges
Short circuits
Temporary shut-downs
Employee damages

and other common afflictions.

Regardless of the situation, a basic equipment breakdown policy can act as an equipment-based general liability policy: It might be broad, but it’ll cover most bases.

What Else Can the Policy Cover?
Because an equipment breakdown policy is often comprehensive, it’s also viable for protecting new, innovative equipment.

Equipment breakdown insurance usually also protects against equipment burnouts. It might also cover you against operational errors. In fact, your policy can pay for damaged equipment replacement. It can also pay for equipment repair. Some policies support the purchase of materials, too. Meanwhile, others defend business owners against losses incurred from business interruption.

What About Property Insurance?
Your property insurance also generally plays a role in your coverage. It might provide funding to help you replace damaged equipment. However, don't take this coverage as a given.

Sometimes, property insurance plans don’t cover equipment breakdowns. Or, an equipment piece’s warranty might be restrictive. If this is the case, the same warranty might not pay for long-term equipment damages. Thus, property insurance might not be enough.

How Much Equipment Insurance Do You Need?
To determine the amount of coverage you need, you’ll need to determine the face value of every machine. Then, you’ll need to determine each machine’s efficiency if it’s damaged. What will happen if the machine isn’t readily available? What will happen if it breaks down completely?

If you own a business—or even a commercial property—contact you agent today. Your policy’s coverage, scope and benefits matter. Your provider is here to help, and they have years of experience backing their suggestions.

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