Equipment breakdown insurance is coverage that you can add to your business insurance plan. This type of policy covers costs associated with equipment failure.
For example, if a piece of building equipment stops functioning, your equipment breakdown insurance will come into play. Not only will your plan help with replacing or repairing the equipment, but it can also reimburse lost income due to the outage.
What Does it Cover?
An equipment breakdown policy protects your business from costly issues associated with necessary equipment such as computers, machinery, office heating/air conditioning, and electrical systems. Typically, your plan will help cover the following costs:
- Repair or Replacement: After a covered incident, your policy will take care of the equipment’s repair or replacement costs, including labor.
- Lost Income: If equipment failure causes your business to cease operations, your insurance policy will help recover any lost income.
- Damaged Goods: Your policy covers the cost of any other items that may have been damaged due to the equipment breakdown (e.g., spoiled products due to freezer failure).
Do You Need Equipment Breakdown Insurance?
Doesn’t equipment breakdown insurance provide the same coverage as commercial property insurance? While similar, commercial property insurance addresses unexpected events such as fires, floods, and thefts.
On the other hand, equipment breakdown coverage protects property from internal events such as user errors, electrical surges, and mechanical failures. It’s important to talk with your insurance agent about whether or not your business needs equipment breakdown insurance.
Please contact Steve Longenecker (303-808-9351, x2) at Mountain Insurance: Longmont to discuss your business insurance coverage options in Longmont, CO, and our neighboring communities.
We give out $25 gift cards for referrals that become our insurance clients.
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