An Equipment Breakdown Insurance policy covers various equipment used in your business, including elevators and heating systems, not just machinery used in manufacturing. This insurance typically covers physical damage to computer hardware, but not software failures or malware.
Manufacturer warranties might cover some repair costs or offer replacements, but they are usually not as comprehensive as equipment breakdown insurance. For example, warranties may not cover accidental damage from human errors like overloading electrical circuits, while equipment breakdown insurance would.
Even if you do not own your building, it is wise to have equipment breakdown insurance, mainly if your business depends on the proper functioning of equipment managed by a critical provider, like a local power company.
For instance, a power surge could disrupt your operations if your pizza shop relies on walk-in customers and online orders. Your business will suffer if a power outage prevents you from processing online orders, maintaining proper temperatures, preparing, cooking, serving, and selling food. Additionally, a prolonged power outage could lead to food spoilage.
In this scenario, equipment breakdown insurance can help cover the following:
If equipment breakdowns could impact your business, this optional coverage might be a valuable addition. The team at our Insurance Agency can help you understand your policy's coverage and determine if your business would benefit from additional protections, such as equipment breakdown insurance.