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A well-operated business relies on functioning, high-quality equipment that’s regularly maintained. When your equipment breaks down or suddenly stops, it can significantly impact your business and revenue.
For this reason, it’s important to consider equipment breakdown insurance, a level of protection your business needs, to ensure continued operations and consistent services and products.
While it’s essential to have backup equipment if something fails, this is often expensive, and there are no guarantees that you’ll meet the same demand in an unexpected shut-down.
Business equipment breakdown insurance is an excellent way to protect the best interests of your company while ensuring your customers receive quality services and products promptly.
When you purchase business equipment insurance, you’ll benefit from the protection of your equipment and many other aspects related to your business operations. For example, even with backup machinery or equipment, running operations can take a while, delaying customer orders.
This may result in order cancellations and a loss of business, which can also impact your company’s reputation.
It’s important to consider what business equipment breakdown insurance will cover, as this becomes a valuable investment for your company.
This coverage not only protects the continuation of your operations but also provides insurance if there is an injury or property damage resulting from machinery breaking down.
Equipment breakdown insurance covers the sudden, unexpected results of accidents in the event of physical damage, which includes the cost of repairs or replacement in specific categories, including boiler and pressure vessels, air conditioning, refrigeration, communication systems, computers, electrical systems, renewable energy, and mechanical systems.
This type of breakdown, involving air conditioning, is one of the most common and often involves other issues related to mechanical or electrical failure. It may also involve a pressure vessel covered under equipment breakdown insurance.
When a major air conditioning system fails, such as a large unit on a rooftop, it can be extremely expensive to replace or repair. Insurance coverage can make a significant difference and provide the coverage you need to remedy the situation.
If your business includes any equipment that generates electricity, such as a generator or electrical system, this is also covered by equipment breakdown insurance in the event of a failure.
Even a short interruption in electrical power can impact a business’ operations significantly, which makes it important to have a backup plan and insurance to cover any damage to electrical equipment and systems.
These systems are standard in boilers and heating systems. They also use in cleaning and sterilizing equipment where steaming and hot water are used.
When a boiler breaks down, it can disrupt the heating of an entire building, which can be detrimental during cold winters. Immediate repairs or equipment replacement is needed.
Technology, communication systems, and computers are constantly changing, though they can be invaluable to your business.
When a system failure impacts communication or regular company operations, it’s important to have coverage to ensure these systems can be replaced or repairs as soon as possible.
There are many reasons why computer and technology systems fail, including concentrated moisture, improper use, loose cords or connections, damage to equipment from natural disasters or vermin, and power surges.
Mechanical systems include equipment such as elevators, ventilation fans, pumps, motors, escalator motors, combustion engines, and similar equipment in manufacturing facilities, office towers, and commercial buildings.
There are many reasons for mechanical equipment to break down, which can be caused by human error, vibration, unexpected damages from natural disasters, seizing, malfunctioning parts, and misalignment.
Many types of renewable energy systems are covered by equipment breakdown insurance, including wind, solar power, bio-fuels, and geothermal energy. These technologies work with mechanical systems, which are also covered under insurance plans for equipment.
Production facilities can experience major setbacks if one or more CNC machines or equipment systems fail or slow due to damage. Repair and replacement can be expensive, making insurance necessary to keep operations running smoothly and without higher costs.
If a website is suddenly shut down or the electricity is down, this can disrupt business immediately and cause delays in customer service and the delivery of products.
In this situation, it can also be challenging to communicate with customers to reassure them of a solution, as phone and online options may be down or limited. When this occurs, a new circuit board may be needed.
A visit from a computer technician or electrician may determine areas of damage that require repairs or replacement, which can be expensive. When insurance covers these items’ costs, continuing operations or working through a contingent or backup plan is much easier until full services are restored.
Make your money do more.
Offers shown here are from third-party advertisers. We are not an agent, representative, or broker of any advertiser, and we don’t endorse or recommend any particular offer. Information is provided by the advertiser and is shown without any representation or warranty from us as to its accuracy or applicability. Each offer is subject to the advertiser’s review, approval, and terms. We receive compensation from companies whose offers are shown here, and that may impact how and where offers appear (and in what order). We don’t include all products or offers out there, but we hope what you see will give you some great options.
It’s insurance coverage that helps you cover the cost of equipment, machinery, and communication systems that break down.
The cost of equipment breakdown insurance varies considerably based on the type of business, size, staff, and equipment you have. If you have more extensive machinery, you’ll likely pay more premiums and require more coverage than a smaller operation.
It’s an essential insurance for many companies to consider, especially if you have a large building or vital systems that your business depends on. Even if you run a small office with computers, it’s important to insure your server and communication systems are in case of a shutdown.
Get great rates for equipment insurance in Canada
