Insuring Equipment for Your Business

Company equipment can break down for many reasons, from power surges and short circuits to employee errors and general malfunctions. Unfortunately, no piece of machinery is exempt; computers, communication equipment, electrical and mechanical systems and refrigerators can all be impacted.
Although a single power surge can sometimes be a minor inconvenience, consider what could happen if a burnout lasts longer than a few hours. Many companies, when waiting for equipment to be repaired or replaced, have to shut down their operations, resulting in lost revenue and potential business. Further, company funds need to go toward any repairs.
While commercial property insurance may cover some equipment, it primarily covers the facilities and often comes with several restrictions for your equipment. As a result, any business owner should take out a separate equipment insurance policy. What should you be aware of?
Why Take Out Equipment Insurance?
Aside from not having all your equipment covered by your commercial property policy, you also need to take warranties into account. Many falsely assume a warranty covers anything that happens to your equipment, but these can also have restrictions. Further, warranties expire past a certain point, as the technology becomes too old.
What’s Covered?
Few pieces of equipment cannot be covered with this type of insurance. While it’s commonly known as “boiler and machinery” coverage, your policy can:

• Reimburse you for repairs and replacements
• Cover any old or new technology
• Cover costs associated with labor
• Protect against business income losses when your company has to temporarily shut down
• Reimburse you for materials or products that are lost or stolen when the equipment no longer functions

Who Needs It?
Companies of all types should take out this type of policy:

• IT
• Hospitals and medical offices
• Dental offices
• Manufacturing
• Stores and retail establishments
• Restaurants
• Hotels
• Schools and colleges
• Apartments
• Religious organizations
• Offices
• Auto body shops
• Shopping centers

Worried your business might not be ready if your equipment breaks down? Consider taking out a separate policy or modifying your BOP. To learn more, give Ion Insurance a call at 203.439.2815.