Do You Know Your Equipment Risks?
As your business depends on equipment to function properly, and to maintain a revenue stream, any breakdown could be a potentially devastating financial experience.
Although technology benefits modern society and the business world, with increased functionality and usability features, it also possesses many risks that make business insurance essential. A few of these risks include:
- Threat of equipment breakdown is greater because technology is fragile and circuitry is sensitive
- Income is lost when equipment breaks down. Many businesses rely on equipment such as telecommunications, email and e-commerce to survive
- Businesses have technology that works with one another and is connected. If one system is affected, other systems can experience damage as well
- Even if your business is a tenant of another facility, an equipment breakdown can affect your bottom line
- Obtaining the parts to fix problems can be a lengthy process
- Equipment may be located in parts of your facility that are hard to reach. Repairs may be hard to make and there may be no warning of a problem since the equipment is out of sight
The Top 5 Most Common Equipment Breakdowns
- Electrical systems
- Air conditioning and refrigeration
- Boilers and pressure vessels
- Computers and communication equipment
- Mechanical systems
The following are typically covered under our Red Bank business equipment insurance:
- Property damage: Cost to repair or replace damaged equipment due to an accident
- Off-Premises Property Damage: Covers portable equipment damaged away from the covered location
- Business income: Income lost resulting from a covered accident until equipment is replaced or repaired. Allows for additional time after repair or replacement to assure that the business is operating at full capacity
- Contingent business income: Income lost after a breakdown at an essential customer or supplier location
- Extra expense: Additional expenses incurred to keep the company going after a loss (e.g., equipment rental fees)
- Service interruption: Income lost and extra expenses incurred after a breakdown at a supplier with whom the insured had a contract. If no contract exists, the equipment must be located within one mile of the insured’s location
- Perishable goods: Food spoilage, manufactured goods or other perishable items lost after a covered incident
- Ordinance or law: Costs associated with complying with building codes and laws
- Expediting expenses: Temporary or permanent repairs to get the business going again
- Hazardous substances: Pays to clean, repair or replace areas that are contaminated by hazardous substances released in a covered loss.
- Data restoration: Pays for the restoration of lost or damaged data.
- Newly acquired locations: Pays for damage to newly acquired locations.
- Errors and omissions: Covers locations that are outlined in the policy
- Brand and labels: Need to sell a damaged product for less than retail price
- Waive of in-use restriction: Pays for damaged equipment that was not in operation at the time of a covered accident
- Computer Equipment
The next step is easy!
Call us today at (732) 649-1600 to learn how our business insurance advisors could get you the right Equipment Breakdown Insurance coverage, at the right price, and superior service. You can also Request A FREE Insurance Quote on our site or Contact an advisor for more information.