Here’s what you need to know insuring your business’s equipment.
Stop for a moment and imagine what would happen if an essential piece of business equipment experienced some kind of breakdown. Production would be halted, deadlines would be missed, and contracts might be lost. When you recognize what’s at risk, it’s easy to see why securing the right insurance for your equipment is so important. This is where equipment breakdown coverage comes in. Not sure how this type of policy works? Here’s what you need to know about insuring your business’s equipment.
What does equipment breakdown insurance cover?
As the name suggests, equipment breakdown insurance offers coverage for the equipment that your business utilizes. It offers coverage for events such as mechanical breakdown, electrical arcing, boiler explosion, and so on. Should your equipment experience these types of issues, your policy would offer compensation for repairs or replacement. Equipment breakdown insurance extends coverage to the following types of equipment:
- Air Conditioning
- Boiler and Pressure Vessel
- Computer and Communications
- Renewable and Alternative Energy
- Production Systems
Do I really need this insurance?
While you might assume that your business’s equipment is protected under your commercial property insurance, you are only partially correct. While commercial property insurance will offer coverage for the equipment that is damaged or lost as a result of vandalism, theft, fire, and so on, it will not extend coverage to the equipment that is damaged due to some kind of internal breakdown or malfunction. In this case, only equipment breakdown coverage will ensure that you receive the immediate equipment repairs or replacement that your business needs.
This is what you need to know about insuring your business’s equipment. Do you have additional questions regarding your business’s insurance? Then please do not hesitate to contact the experts at Contractors Insurance Agency. We are ready to assist you with all your commercial coverage needs today.