man and woman looking at tablet in office

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:

  • The 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

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
  • Demolition
  • 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 the 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.