Why You Need Equipment Breakdown Coverage

Understanding the importance of equipment breakdown coverage for your business.Why You Need Equipment Breakdown Coverage

If your business relies on the use of special equipment, stop for a moment and imagine what would happen if a key piece of equipment were to break down.  While you might assume that your commercial property insurance would offer you coverage to repair or replace your equipment, this isn’t the case.  Without insurance coverage to rely on, your business might experience delays, missed deadlines, lost contracts, and perhaps even be forced to close its doors forever.  Fortunately, you can prevent this nightmare scenario from happening with the right equipment breakdown insurance.  Here’s what you need to know about this essential commercial coverage.

  • 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, and 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.

  • How is equipment breakdown insurance different from commercial property insurance?

Many business owners believe that they don’t need equipment breakdown coverage because they already have commercial property insurance in place.  However, it’s important to understand that these two types of coverage are fundamentally different.  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, storm damage, or other covered perils.  In contrast, equipment breakdown insurance offers coverage for the damages caused by issues with the machinery.  A good way to think about it is commercial property insurance handles the damage caused by external issues while equipment breakdown handles the damage caused by internal malfunctions.

This is what equipment breakdown insurance can do for your business.  Interested in securing the commercial coverage that your business needs?  If so, then turn to the experts at Desert Empire Insurance for assistance today.