Curious about whether or not you need equipment breakdown coverage? If your equipment isn’t covered and it breaks down, you might find yourself with an unexpected debt. If you’re a small business you can’t afford this kind of surprise.
What Equipment Does Your Business Rely on Daily to Operate?
If you’re a retail shop owner, contractor, skilled tradesperson, web developer, or a professional service provider, your small business probably relies on some type of equipment on a daily basis. Whatever equipment your business needs to operate, you should always ensure that it’s protected under the safety umbrella of your business insurance policy.
Why Doesn’t My Property Insurance Cover the Cost of My Equipment Breakdown?
Your commercial property insurance policy is designed to protect the building you operate your small business out of and the contents inside. A commercial policy can protect a number of possessions from specific losses including furniture, equipment, inventory, computers and electronics.
Additionally, property insurance can protect items outside the building. These can include landscaping, outdoor signs, and fencing. Unfortunately, your policy may not cover you for the sudden, accidental breakdown of your equipment.
Equipment Breakdown Insurance
If you had purchased equipment breakdown insurance in addition to your commercial property insurance you would have been covered for your loss. At one time this coverage was limited to major manufacturers but is now an increasingly important part of a sound small business insurance package.
Equipment Breakdown Insurance for Electronics
Technology: New technology such as computerized and electronic equipment is subject to breaking down frequently and depending on your system can be more expensive to repair than mechanical equipment (such as a welding machine).
The Internet and Marketing: Necessary business practices such as Internet marketing make all businesses (large and small) more dependent on their computer systems.
Critical Business Information: Businesses keep sensitive information about their clients and their business on their computer or on an online management system that can’t be accessed when equipment is down.
Employee Travel: Employees now travel with electronics and many work from home. At one time computers were at one fixed location so now there’s more opportunity for equipment breakdown in different areas of the world.