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.
For example, a restaurant owner 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 see your local independent agent for coverage that can keep your business running.
Coverages described here are in the most general terms and are subject to actual policy conditions and exclusions. For actual coverage wording, conditions and exclusions, refer to the policy or contact your independent agent. Claim scenarios are for educational purposes only. Every claim is adjusted according to its own specific set of facts. Whether or not insurance coverage would apply to any claim is dependent on the facts and circumstances of each individual claim and the language of the insurance policy.