Tornadoes and fires may or may not happen to you, but like the human body, from the day it first goes into operation your business equipment begins the journey to its eventual failure.
Standard commercial property policies typically don’t protect against unexpected equipment breakdown, and warranties, service contracts and preventive maintenance agreements only cover so much. Adding equipment breakdown coverage can be a valuable part of your business insurance portfolio.
Who needs equipment breakdown coverage?
The very nature of business and equipment is continually changing, becoming less mechanical and labor-intensive and more technologically and electronically driven. Equipment breakdown protection is more essential than ever.
Power surges and electrical fluctuations are leading sources of equipment breakdown. Some manufacturing equipment is particularly sensitive to these sources, including computerized production machines such as computer numerical control (CNC) lathes, commercial printing equipment and machines using microprocessors.
…and everyone else!
Many people think they don’t need equipment breakdown coverage unless they are in the manufacturing or processing business. Nearly every business is susceptible to failures of telephone systems, computers and air conditioners.
Recently, a restaurant owner and Cincinnati insured found out how valuable his equipment breakdown coverage could be. His refrigeration system broke down, resulting in a $30,000 loss. Equipment breakdown coverage paid for costs associated with a refrigerated trailer to temporarily provide for his food storage needs while a new refrigeration compressor was installed.
So consider the mechanical and electronic systems your business depends on, and look for coverage that can keep your business running.
Submitted by Robert Crouch