Manufacturing companies provide products for many industries across the US. Just about all corporations, large and small, rely on getting their merchandise on time from a variety of producers, so any delays can become a major issue that you, as a manufacturer, may face. When an equipment failure slows production or ceases operations altogether, you could lose valuable business, as well as face serious financial losses.
If for whatever reason, your operations are interrupted you’ll need equipment breakdown coverage as an essential part of your manufacturer’s insurance in Orlando, since it alone deals with this type of concern. It’s likely that you may not have backup equipment in place to complete the job, which brings up the question of how will you be able to deliver your orders?
Your coverage can help you find alternate facilities or allow you to rent equipment. Without insurance, either of these solutions will increase your costs. Many of your customers likely will not wait due to the fact that they have deadlines as well, so there’s a good chance that cancellations will occur, so you’ll not only suffer the loss of revenue but possible damage to your reputation as well. You need to have financial assistance in place to address these issues.
Types of mechanical issues you may experience
For many in the manufacturing industry, air conditioning and refrigeration represents the number one source of breakdown claims. Because many air conditioning units are located upon the roof, there will likely be the added expense of removing the unit for repair or replacement, which can be costly as well.
Boiler and pressure vessels are often a source of concern, especially if they have been in use for several years or longer. Boiler and pressure vessel accidents often occur due to defective welding, or in some cases, scale or sediment build-up. Employees can also become injured if near the point of failure of the malfunctioning equipment.
Many manufacturers also cite electrical systems as the reason for work stoppages, with components such as transformers, panels or cables short-circuiting, and since these items are generally interconnected, the excessive voltage in one component can lead to damage to several others.
In order to survive, from a business standpoint, you’ll need the protection of manufacturers insurance in Orlando that includes equipment breakdown coverage for all pertinent machinery in use at your facility.