Manufacturing plant owners know the sting of having an important piece of equipment cease to function at a critical time. Years ago, only large manufacturers invested in equipment breakdown insurance (often referred to as “boiler and machinery insurance”), but is has become an increasingly important part of any sound coverage package, including the purchase of Precision Manufacturers Insurance.
This is because many manufacturing enterprises now depend heavily on a lot of new technology, such as fragile electronics and computerized equipment, much of which we don’t fully understand. With all of the mechanisms involved, making a quick fix” is highly unlikely. This means that these entities are subject to experiencing breakdowns that can cause expensive delays.
In addition, maintenance and repairs tend to be more frequent and costly than with traditional equipment. With all the new business practices in place, such as Internet based systems and tools, many businesses have become more dependent than ever on computer-based systems, and many of these cannot be accessed during periods of equipment breakdown.
Breakdowns create serious internal issues
You can miss a lot of important deadlines should your business experience a work stoppage of any length. One way to think of equipment breakdown coverage is as a type of accident and disability insurance for the equipment that you own. If business interruption is a potential hazard bent on threatening the livelihood of your company, then you should make the wise decision to research this vital coverage, which you may already have, but you might need to determine if you have adequate coverage in place.
Talk to a leading producer of equipment breakdown insurance to help with providing for your needs to prevent losses that may occur at any time and in any given situation. Business owners should understand that equipment breakdown coverage is “hardware” insurance, not “software” insurance. The policy provides protection when there is some sort of physical damage, such as a power surge that destroys a computer’s hard drive. Computer failures due to software problems, such as “bugs” or viruses, will not be covered under this policy.
Note that equipment breakdown coverage covers the cost of repairing and replacing any damaged equipment, and frequently includes “business interruption” and “service interruption” coverage, which will allow for coverage against loss of business income. These coverage options should be made available to you in a Precision Manufacturers Insurance policy, so speak to an agent about this valuable resource.