Equipment Breakdown

Most Every Business has Some Equipment Breakdown Exposure

Could an equipment breakdown destroy your business?

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Equipment Breakdown Coverage was originally created for businesses with large boilers, systems and machinery needed for operations and manufacturing. These days, almost every business has some equipment breakdown exposure. Mechanical breakdown and electrical damage are common occurrences, and can lead to severe interruptions in business. Many businesses have maintenance programs, equipment warranties and service contracts, which can be a good back-up plan, but not the best recovery method after a major loss.

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There are various causes of equipment breakdown, such as:

• - Supply line surges

• - Excessive moisture

• - Insulation deterioration

• - Overload conditions

• - Lubrication failure

• - Improper repairs

• - Poor connections

• - Foreign material affecting windings and electrical circuits

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and automation technology is extremely expensive. Most businesses rely on computerized equipment to conduct transactions, maintain inventory, and deliver products or services. A failure in one of these critical systems could lead to business failure, not just for your business, but others that rely on your company’s operation. In the manufacturing industry, businesses are often integrated to co-produce a final product. Equipment breakdown can lead to millions of dollars in lost income, the financial ruin of several businesses, and an unrecoverable loss of goodwill. Businesses that use POS systems to process transactions can loose hundreds of thousands in lost income if a satellite or communications line is damaged. Businesses that rely on refrigeration, utility lines, or portable machinery are all exposed to systems failure. Can you think of an equipment breakdown that would destroy your business?

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Best-in-Class Insurance at Unbeatable Pricing!

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Boynton Insurance Group has partnered with best-in-class insurance providers to provide the best coverage at the best prices. Check it out for yourself now!

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Equipment Breakdown Coverage will pay to repair or replace damaged equipment due to a covered loss. In many cases, the policy will also pay for the business interruption, or loss of income to your business as a result of an equipment breakdown loss. Insurance companies will also often pay necessary expenses to help expedite a business’ period of restoration. Policies can include coverage for extra expenses during the restoration period which are over and above the normal costs to your business, such as increased rent at a temporary location and the costs necessary to relocate and expedite delivery of products and services. Whereas, a property loss will often be subject to a $500 or $1000 deductible; business interruption losses have time deductibles, such as 24, 48 or 72 hours.

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Regardless of the nature of your business, you can likely imagine how Equipment Breakdown could directly or indirectly affect your business. Our commercial lines coverage specialists are prepared to meet with you and discuss how to mitigate these losses by customizing an Equipment Breakdown policy for your business.