Some types of insurance are required to operate legally, while others are optional
Of course, the coverage a business needs depends on the type of company you run and the number of employees who work there. There are also some optional insurance coverage business owners should always consider.
Here is the second of three "optional" insurance coverages that business owners often leave out of their insurance package which could literally save the business in a time of crisis.
# 2 - Equipment Breakdown Coverage
Take a walk through your business and look at all the big pieces of equipment that you would not like to replace out of pocket. All it takes is one person misusing the equipment, improper maintenance or a power surge that could wipe out your entire computer system.
You might mistakenly believe that your business property/casualty insurance will cover the damage. However, business property/casualty policies only cover damage to your equipment from "external" causes, such as a fire, a flood or a tree falling on your roof. Those policies do not cover damage from "internal" causes such as mechanical failure, electrical short circuit or "arcing" (faulty wiring or motor burnout).
Losses related to equipment breakdowns are covered by aptly named "equipment breakdown" insurance. Equipment breakdown insurance (sometimes sold under the name of "boiler and machinery insurance") is an increasingly important part of any sound small-business insurance package for several reasons:
Equipment breakdown coverage pays the cost to repair or replace equipment damaged by a covered accident. It can also cover business income losses that stem from an equipment breakdown and the additional costs you incur to speed restoration of business operations.
Most insurers are building equipment breakdown coverage into their commercial property packages. If you have an older policy, however, you may have to review it with your insurance agent to make sure it covers the high-tech equipment upon which your business now relies. If it doesn't, maybe it's time for an upgrade.
Call us for more on Equipment Breakdown insurance
EMERGE INSURANCE AGENCY
Cecil Williams -