Equipment breakdown coverage may help pay for covered repairs of equipment that malfunctions, and it sometimes also covers the cost of setting up temporary operations while broken equipment is being repaired. Having financial assistance with these potential costs may help businesses in several ways. Here are some of the reasons why your business might want this insurance.
How Does Equipment Breakdown Coverage Help My Business?
Breakdowns Result in Unanticipated Costs
First, unexpected breakdowns result in unanticipated repair costs. Without insurance that covers these costs, your business has to be prepared for them. That often means either carrying significant cash reserves or borrowing if something breaks. The former limits the amount of cash your business is able to invest in opportunities, and the latter typically comes with interest that increases the total repair costs.
For a relatively small fee, your business may be able to get equipment breakdown coverage that will let you free up capital and avoid borrowing during a covered emergency.
Technology Increases Repair Costs
Second, a lot of equipment is becoming more expensive to repair as it becomes more technologically advanced. Less and less equipment can be fixed in-house or by general repair personnel, and specialized technicians aren’t inexpensive -- especially if you need them to fix something on short notice.
With a generous limit, an equipment breakdown policy may greatly reduce how much your business has to pay for covered repairs -- even if they’re needed immediately and during non-business hours.
Hiding Equipment Increases Repair Costs
Third, any equipment that’s hidden from view may cost more to repair if accessing the equipment adds to the total labor needed. While this isn’t an issue in every situation, more and more businesses are hiding equipment in corners and behind walls in customer-facing areas. The clean look that’s created is usually appreciated by all, at least until a technician has to cut into a wall or squeeze into a tight spot so they can access the equipment.
Increases caused by accessibility issues might only have a relatively minor impact on labor costs for repairs, but any impact can increase how much your business pays to fix an item. If your business has equipment breakdown insurance in place, this is one more potential cost increase that the business may not have to pay.
Breakdowns Cause Downtime
Fourth, equipment breakdowns frequently interrupt normal operations. Depending on the equipment that malfunctions, the interruption might bring operations to a complete halt, or it might only slow operations and reduce efficiency.
In some severe situations, your business may have to find temporary solutions that let your business continue to run while the broken equipment is repaired. While this doesn’t increase the cost of the repair work itself, it does increase the breakdown’s net effect on your business’ finances.
Many equipment breakdown policies will help pay for a temporary solution, so your business may not have to worry about how much renting equipment or securing other facilities will be.
Lots of Equipment Can Break Down
Finally, hardly any equipment is immune to breaking down. Almost any piece of machinery can malfunction, and most major pieces of machinery can have these multiple negative effects on your business.
Therefore, having an equipment breakdown policy that offers robust coverage for a range of potential breakdowns is often a wise idea. An insurance agent who’s familiar with equipment breakdown policies can help you find one that’ll provide good protection for the equipment that your business uses.
Speak with an Agent Who Knows Equipment Breakdown Coverage
To speak with an independent insurance agent who specializes in equipment breakdown coverage, contact World Insurance Associates. Our agents have helped many businesses insure their essential equipment and machines against potential breakdowns, and we’re here to assist your business too.