In today’s marketplace here in New Jersey, so many companies rely on key equipment or machinery in use at their facilities in order to remain operational. And in addition, because most businesses today make use of computers, a major breakdown could result in missed deadlines or perhaps even a full shutdown. The loss of income could be quite consequential, and add to that the cost of repair or replacement of equipment that goes down and this could dramatically add to your financial woes.
While a standard commercial property insurance policy typically covers equipment for damage resulting from external issues such as fire, windstorms, vandalism and theft, it generally excludes coverage for losses associated with mechanical breakdown, motor burnout, electrical surges, boiler malfunctions, or other internal problems that may occur. What you should have bought, in addition to your other Wayne New Jersey Business Insurance policies, was equipment breakdown insurance.
Many small and medium-sized business now purchase this policy
This product was once mostly limited to large manufacturers, but equipment breakdown insurance (sometimes still referred to as “boiler and machinery insurance“) is an increasingly important part of any sound small or medium-sized business insurance package. With the newer technology that exists, such as fragile electronic and computerized equipment, which is sometimes subject to breakdowns that can be more frequent and costly than traditional mechanical equipment, this is an important policy to have in place.
For many companies, critical business information often exists only on the Internet, or in online databases, and these cannot be accessed during periods of equipment breakdown. Add to this the fact that employees are now traveling with many types of equipment that were once permanently attached to a fixed location, breakdowns now often occur in places other than the ones insured under a traditional property/casualty policy.
Admittedly, there is some overlap between warranties and equipment breakdown coverage, but it’s important to note that warranties usually exclude things like operator error, which are normally covered by an equipment breakdown policy. For example, if one of your employees is negligent and overloads an electrical circuit that in turn causes damage to vital equipment, such as computers, you should be covered under this policy.
In your Wayne New Jersey Business Insurance package, equipment breakdown coverage is often built into your insurers commercial property packages. Speak to a broker familiar with this product to ensure it covers the type of equipment upon which your business relies so heavily upon.