Is your Business Insurance Policy Protecting Your Equipment?

Did you know…? Your standard business or property policy specifically excludes equipment breakdown unless your equipment is damaged by fire or lightning.

There does exist, an equipment breakdown policy that can close the gap in your coverage to ensure you are better protected. The following are common causes of equipment breakdowns:

  • Power surges and fluctuations
  • power interruptions
  • insulation deterioration
  • overload
  • boiler explosion
  • loose connections
  • moisture or high humidity
  • dirt and dust
  • vibration
  • oil contamination
  • misalignment
  • metal fatigue
  • lack of lubrication
  • scale build-up
  • pump failure
  • and overall inadequate maintenance and human error.

Although equipment breakdown policies will vary, they commonly insure damage to the equipment itself, spoilage of perishable goods due to the breakdown, and loss of income due to the equipment breakdown.

What ‘equipment’ are we talking about? What might you have that needs this extra policy?

A few examples are computers, phone systems, photocopier/fax machines, security systems, ovens, scanning equipment, boilers, hot water tanks, heat exchangers, air
conditioners, refrigeration units, pumps, fans, compressors, motors, transformers, electrical panels, presses, production machines, motors, generators, gears, and
robotic milking systems.

If you’re unsure of what’s covered in your business or property policy, call your commercial or farm broker to ensure there are no gaps, and you’re fully protected.