Commercial property insurance is an important protection for all businesses to have, but what happens if your equipment breaks down for reasons other than an insurable incident?
What Does Commercial Property Insurance Cover?
Your commercial property coverage only offers benefits when your equipment is damaged by a fire, storm, theft, or other covered peril. Damages caused by equipment breakdowns due to an accident or mechanical problems are not covered with your commercial property policy.
What about Warranties?
You may think that your next step is to rely on your equipment warranties. However, warranties have very strict time limits and qualified incidents that they will cover. You may find when relying on warranties, your particular incident is excluded or the true extent of your damages are not covered. Also because warranties are meant to cover a small window of time, it's entirely possible that your breakdowns won't occur until well after the warranty expires.
Equipment Breakdown Insurance
Equipment breakdown insurance not only covers property damage and repairs to the affected equipment; it also covers additional losses created by the breakdown. This can include losses such as rental expenses for temporary equipment rentals, expedited repair costs, income loss and, in the event that the broken equipment was used in food preparation or storage, food spoilage.
You may be surprised at the type of equipment covered within an equipment breakdown policy. You can insure equipment such as computers, machines, water heaters, air conditioning units, food preparation and storage equipment, boilers, and more.
Equipment breakdown coverage is an important policy for entrepreneurs who own their business equipment, but there are certain exclusions that one should be aware of. In order to be covered, your equipment must be damaged unexpectedly and by accident. Equipment damaged due to lack of proper maintenance may be excluded, as might damages that occur as a result of an act of war or during a peril covered by commercial property insurance.
If you want your equipment covered, give us a call or stop by today. ECI Agency can help you choose the right policy and fill any other gaps left by your current business insurance plan.