If you own a company that uses a large number of different machines, it’s important to have all of them covered by some form of insurance. The cost of replacing these machines can be quite expensive, and doing the repairs on your own may not be your best option. Some of these insurance policies will have deductibles. Others may not cover specific types of machinery or problems that may occur. It’s important to look at the fine print when selecting any type of machinery insurance. Here is an overview of the different types that are available that you can get for your business.
What Is Machinery Insurance?
This is insurance that effectively covers the most common problems that different types of machinery can develop. This may cover unanticipated losses caused by the machinery not functioning. Many of these problems can occur suddenly, making it impossible for your business to move forward. This insurance is often used by companies that own factories with multiple machines. An example of this would be a mining operation where each machine is responsible for a very important task. You may cover boilers, and machines you use in the shop, which is typically referred to as equipment breakdown insurance.
Overview Of Equipment Breakdown Insurance
This insurance will cover a wide range of different machines. This may include mechanical machines, machines that rely upon electricity, and those that may do computations such as computers. In some instances, this is called boiler and machinery insurance. Regardless of its designation, it will cover the cost of replacing the machinery, repairing, and it will often include the cost of labor and time involved to do the repairs. In some cases, this insurance will cover lost income which is inevitable. When machines do not function, your business can come to a standstill. If you are dealing with inventory with the limited shelf life, you can be compensated for spoiled inventory and all of the expenses that occurred during this restoration period.
The Five Categories Of Machinery Insurance
This type of insurance is broken down into five distinct categories. This will include boilers and pressure equipment, HVAC systems, computers, electrical systems such as transformers, and mechanical machines as well. The mechanical machines will include generators, engines, motors, and even water pumps. If you have elevators at your place of business, these are often covered by these policies. If you have a business that uses phone systems, security systems or has electrical panels, this can all be covered by these policies in great detail. The cost of this insurance will depend upon how much coverage you need, as well as the deductible that you will pay when you need to file a claim.
How To Find Affordable Machinery Insurance
As with most types of insurance, there will always be insurance companies or brokers that will have a list of potential policies that you can choose from. They may assist you in choosing one that is best suited for your business. Each of these professionals will likely have several clients that use similar types of machinery. Additionally, if they are brokers, they will likely have relationships with many companies that can offer you special prices. By doing your research, you can also locate different businesses near you that can offer you affordable machinery insurance for your company.
Be Aware Of Potential Exclusions
There will always be exclusions in machinery insurance that you may not be aware of unless you ask about the possibility. Regardless of the level of coverage that you have, you should know what to look for when obtaining this type of policy. For example, if your machinery is damaged by a power surge, it’s possible that the damage will cause your computer to malfunction. If that’s the case, the insurance policy will cover the cost of a replacement computer. However, if your computer needs software updates, you won’t be covered under your policy. Always be aware of what these policies will and will not cover before deciding the best one for your business.
Always Know The Costs
If you are running a business that relies on machinery to keep your operations running smoothly, you may want to consider adding a breakdown coverage to your insurance policy. However, each type of policy will have different costs associated with having it. There will be the monthly cost of paying the premiums, and the cost of the deductible, plus there could be other charges that you may not be aware of. This kind of coverage will pay for the parts and labor needed to fix a malfunctioning piece of equipment. However, if one of the machines is not covered by the policy, this will be an additional cost that you will have to pay out-of-pocket. Therefore, before you purchase this type of coverage, you need to understand all of the potential and existing costs associated with it.
It is vitally important to have machinery insurance in place before you start your business. The moment that one or more of your machines break down, your business will cease to function. Unless you have a replacement machine to switch out, you will be waiting for the repairs to be done or a replacement machine to arrive. Whether this is in mechanical, electrical, or a computer-related issue, all of these problems can lead to lost revenue. By having these policies in place, you can feel confident about the potential of your machinery failing to work, knowing that you will be covered by this machinery insurance.