23 Aug Does Your Business Need Equipment Breakdown Coverage?

Most businesses have some type of equipment that they need to get the job done. Landscapers need lawn mowers and leaf blowers. Accountants need computers and printers. Asphalt companies need melters and sealcoaters. Without these items, the company wouldn’t be able to fulfill its clients’ needs.

But what happens when these pieces of equipment break down? You, the business owner, are responsible for getting things back up and running, which sometimes means having to pay out of pocket for the repairs. That is, unless your business has equipment breakdown coverage.

Do you have equipment breakdown coverage? Not sure? Let’s find out why this may be a lifesaver for your business down the road.

What is Equipment Breakdown Coverage?

Like the name implies, equipment breakdown coverage is designed to cover the physical equipment used by a business should something happen to make it no longer function.

In general, equipment breakdown coverage will kick in when something happens to your electrical equipment, manufacturing or mechanical equipment, computers and related hardware like printers and fax machines, high pressure devices and boilers, and even a building’s HVAC system.

Other types of equipment are covered by these policies as well, with them going slightly beyond what standard business insurance takes care of. If your company relies on equipment in order to generate revenue, then you need to look into getting one of these plans.

What Doesn’t It Cover?

As with all types of insurance, there are some things that simply aren’t covered by equipment breakdown coverage. These circumstances include:

• General Wear and Tear – Sometimes, equipment just breaks down because it gets used every day. If this is the case, then equipment breakdown insurance won’t cover the cost of repairs, even if the piece of equipment is properly maintained.
• Software and Related Programming – Although computers and other peripheral devices are covered, the programs and data that are contained in them are not. This means that if there’s a power surge and your computers get fried, your insurance policy may pay to replace the equipment, but not the programs that they used.
• Damage Caused by a Natural Disaster – Sometimes, floods, tornadoes, hurricanes, and other natural disasters happen. If your equipment gets damaged by one, you’d have to rely on your property insurance and specialty insurance for replacements.

The Cost of Equipment Breakdown Insurance

Although you can’t always put a price on the equipment that you need to conduct business, insurance companies try to and the overall worth of the machines are part of what makes up the cost of your equipment breakdown insurance. Other things that the insurer looks at include the deductible that you choose, the age of the equipment, the condition that its in, and whether or not you decide to include other specific types of coverage for certain items.

Choosing Equipment Breakdown Insurance

If you want equipment breakdown insurance on the mechanical items that your business uses every day, then you’re setting yourself up for the future. You never know what will happen, and it’s important to have the right type of insurance coverage in place, just in case. If you have any questions on equipment breakdown insurance or want to get a policy for your business, then contact Spivey Insurance. Our expert agents are happy to discuss the specifics of your business and its equipment to help you decide what coverage best suits your needs.