What Business Owners Need to Know About Equipment Breakdown Insurance

Your business may depend on machinery, appliances, electronics, and other equipment for various functions and tasks. But despite your best efforts, these assets may eventually suffer damage or malfunction, potentially causing extended delays and costly financial losses. Fortunately, a well-rounded approach toward risk management and loss control can help you prepare for these situations. Understanding and securing appropriate equipment breakdown insurance is particularly essential.

What Is Equipment Breakdown Insurance for Businesses?

Equipment breakdown insurance may be available in multiple forms, including for homeowners and commercial entities. In the latter’s case, this type of coverage is often a key component within commercial property insurance. It may also be known as mechanical breakdown insurance.

What Can It Cover?

Your equipment breakdown insurance can financially protect your business from losses and damages involving many key components of your workplace. Specifically, breakdowns and malfunctions involving the following may be covered:

• Mechanical systems, such as motors, engines, generators, elevators and manufacturing equipment

• Computer systems, such as communications equipment, security and fire alarms and networks

• Electrical systems, such as transformers, electrical panels and cables

• Air conditioners, refrigeration machinery and other appliances

You can submit a claim against your policy in response to issues involving covered equipment. If approved, your payout could help with the following:

• Recouping income your business would have otherwise earned

• Repairing or replacing damaged equipment

• Labor costs needed to deal with the equipment issues

• Compensation for spoiled goods or inventory, such as food products ruined by refrigeration issues

You should be aware that equipment breakdown insurance typically excludes incidents and subsequent losses arising from normal wear and tear. As such, you should highly prioritize keeping up with maintenance.

We’re Here to Help

Contact the Morgan Marrow Company in Hampton, Virginia, today to learn more about equipment breakdown coverage and ensure you have appropriate coverage.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.