Should Your Business Have Equipment Breakdown Insurance?

Most types of business insurance do what they say on the tin, such as with Equipment Breakdown insurance, which provides coverage for equipment breakdowns. No big surprise there. However, you might be surprised to learn the many ways in which equipment breakdown insurance can protect your business. This isn’t a simple equipment repair contract; equipment breakdown insurance is a comprehensive solution to prevent or limit financial losses due to equipment failure.

Equipment breakdown insurance is typically purchased as a compliment to your commercial property insurance coverage, the latter of which provides coverage for your building, equipment, supplies, and inventory, but does not cover equipment breakdown.

Here are some of the key coverages included with many equipment breakdown insurance policies:

Repair expense
Specialized equipment can be costly to repair, often costing thousands to get your business back online. Equipment breakdown coverage can take some of the sting out of repair bills.

Expedited repair
When the failure of a key piece of equipment brings your business to a halt, you need to get back online pronto. Customers are waiting, production is at a standstill, and workers are sidelined. Your equipment breakdown insurance often provides coverage for the extra costs associated with expedited service to repair your equipment and get your business moving again quickly.

Business interruption coverage
Equipment breakdown has costs beyond just the repair expense. If your business revenue suffers, equipment breakdown insurance can help cover some of the costs associated with quantifiable lost revenue while your equipment is down or being repaired.

Perishable goodsThe shelf life of some of the items you produce or store may be limited. If you have an equipment breakdown that leads to perished goods, your policy can provide coverage to protect your business due to spoilage associated with equipment failure.
​
An equipment breakdown policy is one part of a comprehensive protection strategy for your business property, supplies, and inventory. Reach out to one of our specialized brokers to discuss the many ways your business can be more secure if the unexpected happens.