When you think of business equipment “breaking down”, you probably bring images to mind of large manufacturing machines and big warehouses. And while this can sometimes be the case, more “everyday” equipment should also be in this conversation, including electrical and mechanical equipment, air conditioning and refrigeration systems, communication equipment and computers, boilers and pressure equipment, and even new technology.
Having insurance for equipment breakdown may seem like it has pretty self-explanatory coverages. But you might not have thought about some of the ways this coverage could support your business when things aren’t running.
Repair and Replacement
Likely the most obvious use for this coverage is to repair or replace the equipment that isn’t working. But that also takes the labor to complete the process. Having this coverage may also help you have the funds to pay for this labor.
Business Interruption
Your business may not be able to fully operate without this equipment, or it may not be able to operate at all. If the work outage meets the parameters of your policy’s language, you may be able to recuperate revenue loss that occurs as a result of the equipment’s failure.
Damaged Products or Goods
If the equipment’s malfunction causes damage to your business’s products or goods, your policy may provide you compensation. Think about issues with refrigeration or damages due to lack of power. These are examples that might come into play.
Third Party Damages
What if your equipment breakdown causes damages to other businesses? Or what if their equipment failure has an impact on your business? Having the right coverage in place might protect you if either of these scenarios occurs.
Part of running a successful business is planning ahead. And when unforeseen issues occur, good planning is critical. Contact Brandon Patterson at 865.453.1414 or email brandon@ownbyinsurance.com and he’ll be happy to discuss the insurance aspect of your plan and provide you info on the coverage you need.