Why Businesses Need Equipment Breakdown Insurance
Is equipment breakdown coverage something your company needs?
If your business relies on the use of specialty or expensive equipment, then it’s vital to have the right insurance to protect it. Unfortunately, many business owners wrongly assume that their existing commercial policies will offer coverage for their equipment in the event of a breakdown or malfunction. For instance, many business owners have the misconception that their commercial property insurance will completely cover their equipment. To ensure that you secure the coverage that your company’s needs, here’s what you need to know about insuring your equipment against breakdown.
- How is equipment breakdown insurance different from commercial property insurance?
Many business owners believe that they are fully protected because they have commercial property insurance in place. However, it’s important to understand the limits of this coverage. 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, storms, or other covered perils. This means that this insurance will not offer coverage for the damages caused by malfunctions, breakdowns, or other internal issues. A good way to think about it is commercial property insurance is limited to the damage caused by external issues. The only way to secure coverage for internal equipment issues is with equipment breakdown insurance.
- 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, or 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.
This is how businesses can secure coverage to protect against equipment breakdown. Ready to secure the right coverage to address all your business’s needs? If so, then contact the experts at Club Agency Insurance Brokerage in Garden City, New York. We are ready to get you the coverage that you need today.