Learn to protect your tech, machinery and other equipment from accidental malfunctions.
Is your business at risk if key equipment suddenly breaks down? Would you still be able to operate, or would business come to a standstill? Equipment breakdown coverage can be a lifesaver for many small businesses that rely on machinery to thrive.
This type of insurance can help protect your business from unexpected malfunctions and the financial losses that come with them.
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Equipment breakdown coverage can help protect your business from unexpected costs and disruptions. It covers many types of equipment, from computer equipment to refrigerators and electrical panels to water heaters and air conditioning systems. Equipment breakdown coverage extends a commercial property insurance policy.
It can also help protect against lost business income resulting from equipment failure — a feature not usually included in many commercial property insurance policies.
Equipment breakdown coverage helps protect your business property and equipment from unexpected malfunctions, whether due to equipment failure or human error. This coverage excludes damages from natural disasters or external events.
This insurance mainly benefits manufacturing, call centers, food service and healthcare businesses. But it’s worth considering for any business that could face income loss due to equipment breakdown.
Insurance for equipment failures could help in the event of:
Unlike standard commercial property insurance, which covers damage from external events like fires or theft, equipment breakdown coverage focuses on problems with the equipment itself. Think of it as a safety net for your machines.
Imagine your restaurant’s commercial oven breaking down during peak dinner hours. Not only do you lose the ability to cook, but you also risk losing customers and damaging your reputation.
Or your office’s HVAC system conks out in the middle of summer, making it uncomfortable for employees and potentially impacting productivity.
These are just some examples of how equipment breakdowns can disrupt your business operations and bottom line.
Equipment breakdown coverage offers several advantages for small business owners.
By safeguarding your equipment, you can avoid hefty expenses associated with breakdowns.
The cost of equipment breakdown coverage varies depending on several factors, including:
While cost might be a factor, the potential financial loss from an unexpected equipment breakdown can be much greater.
Equipment breakdown coverage is valuable, but it’s essential to understand its limitations. Here are some common exclusions:
It’s crucial to review your policy carefully to understand its specific exclusions. This will help you assess your coverage needs and avoid surprises.
We’re 100% dedicated to small businesses. We understand why it’s vital to keep your business running. NEXT’s small business insurance helps you take the risks needed to grow and scale your business and minimize stress.
We’re completely online, so you can get an insurance quote, select your coverage and buy a policy in about 10 minutes. Your certificate of insurance is available for download whenever you need it, and help is always just a call away.
Kim Mercado is a content editor at NEXT. She writes and edits content for small business owners, and enjoys helping entrepreneurs solve their business challenges and learn about insurance. Kim has contributed to Salesforce, Samsara and Google.
You can find Kim trying new recipes and cheering the 49ers.
