Insurance for Machinery Repair and Maintenance

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Insurance for Machinery and Maintenance

In this industry, workers maintain equipment such as agricultural machinery, blade sharpeners, coil rewinders, food machinery, industrial trucks (e.g., forklifts), refrigeration equipment, tractors (farm or construction equipment), and similar machinery.

The demand for operators and economic growth in the machinery and maintenance repair industry has increased, meaning an increase in activity for your business in addition to machinery wear and tear. When repairing heavy machinery for various clients, you’ll want to ensure a smooth process in which your client’s equipment, your equipment, and your workers are protected. It’s important for machinery repair and maintenance businesses to consider which insurance needs will best protect their assets.

What Types of Coverage Do Machinery Repair and Maintenance Owners Need

The types of insurance you need will differ depending on the materials you use, the types of maintenance services your business provides, and how your company operates. One of the most commonly purchased coverages is general liability insurance, as it applies to a variety of scenarios. This insurance covers third party claims of bodily injury or property damage, such as if a client claims your employee broke their machinery during a repair.

Another key type of insurance is workers compensation. Workers compensation requirements vary by state but are often required if your company has 3-5 employees. You will need to check the requisite laws in your state to determine if this regulation applies to you and your industry. Nevertheless, Workers Compensation provides coverage for lost wages and medical expenses needed for an employee who received an injury in the course of their work. For example, an employee could have broken a hand while repairing an appliance. Workers compensation also covers lost wages for the employee and recovery services the employee may need to return to work.

Inland marine insurance is beneficial for business owners who deliver valuable items, such as machinery equipment. This insurance covers equipment in-transit (on land or water) such as tools and parts needed to repair equipment, such as parts for a forklift or refrigeration truck repair.

Furthermore, Umbrella Insurance, often called the “back-up plan”, is used to extend your liability limits and protect companies who have done or will do expensive repairs. Umbrella insurance provides additional financial coverage in the event of a large claim such as another company suing your company for damage or loss of their construction equipment.

Similar to personal auto insurance, commercial auto insurance may or may not include certain types of coverage depending on the policy you purchase. It's important whether you're using the vehicle to visit a client site or transport equipment to a separate location, as personal auto insurance will generally not cover a vehicle being used for commercial purposes. Commercial auto insurance, however, will generally cover collision, medical, and uninsured motorist coverage in the event your employee gets into an accident while delivering supplies with the company industrial truck.

Hired and non-owned auto insurance is similar to commercial auto insurance but has broader coverage concerning vehicles used for your business. The insurance provides coverage for any incident involving any vehicle not owned by the company but used for the purpose of the business, such as an employee using his car to drive over equipment to a client, but experiencing an accident on the way there.

Machinery Repair and Maintenance Owners Insurance Needs and Risks

The machinery repair industry can be a reliable source for clients looking to have their heavy equipment repaired. However, within this industry there are numerous risks, such as your worker getting a cut while sharpening tools or a company vehicle experiencing a collision on the road. Getting various types of coverage such as insurance for machinery, insurance for heavy equipment, or workers compensation can help protect your business from incidents like the examples provided.

Cost of Machinery and Maintenance Insurance

The cost of insurance is dependent on the number of employees in your business, the services you provide, and the type of equipment you use, among other factors. For example, if your business only has two employees and just needs General Liability coverage, you'll pay less than a business with 20 employees that regularly transports valuable equipment. Comparing insurance rates and selecting the best types of coverage for this industry can help your machinery repair business remain successful.

What type of insurance does this industry need?

Policy What is it? Why get it Popularity in your industry Want free quotes?
General Liability
This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy. General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.

What is it: This policy protects your business in case of third party claims, such as bodily injury or property damage. For example, the common "slip-and-fall" claim would be covered by your General Liability policy.

Why get it: General Liability insurance is often considered to be the core coverage, particularly for businesses that regularly physically interact with customers or sell physical goods. In addition, many businesses have a contract, like a loan or a lease, requiring that they have this coverage.

Workers Compensation
Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work. Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.

What is it: Workers Compensation covers an employee's lost wages and the cost of resulting medical treatment if they suffer a work-related injury or disease. It also covers services needed to help the employee recover and return to work.

Why get it: Workers Compensation coverage is mandatory in most states. The number of employees after which it's required differs by state, but you will generally need coverage once you have employees.

Inland Marine
Inland Marine insurance covers goods in-transit either on land or through shallow water, as well as certain types of movable property (such as medical equipment). If your business has valuable equipment which regularly needs to be moved, then this can be a core policy to protect your property.

What is it: Inland Marine insurance covers goods in-transit either on land or through shallow water, as well as certain types of movable property (such as medical equipment).

Why get it: If your business has valuable equipment which regularly needs to be moved, then this can be a core policy to protect your property.

Umbrella Insurance
Umbrella insurance offers excess liability protection in the case that your General Liability, Commercial Auto Liability, and/or Employer's Liability coverage is insufficient. It essentially acts as a "back-up" plan, providing additional financial protection in the case that your business faces a particularly large claim that exceeds a single policy's limits. This policy can be particularly valuable for a business that faces a variety of risks and has multiple liability policies.

What is it: Umbrella insurance offers excess liability protection in the case that your General Liability, Commercial Auto Liability, and/or Employer's Liability coverage is insufficient. It essentially acts as a "back-up" plan, providing additional financial protection in the case that your business faces a particularly large claim that exceeds a single policy's limits.

Why get it: This policy can be particularly valuable for a business that faces a variety of risks and has multiple liability policies.

Commercial Auto
Commercial Auto insurance provides coverages such as liability, collision, comprehensive, medical payments and uninsured motorist coverage. Any vehicle on the road must be insured, and any incidents that occur while a vehicle is being used for business purposes may not be covered by a personal auto policy. That's why it is so important to make sure you have Commercial Auto insurance for any vehicles owned by the business.

What is it: Commercial Auto insurance provides coverages such as liability, collision, comprehensive, medical payments and uninsured motorist coverage.

Why get it: Any vehicle on the road must be insured, and any incidents that occur while a vehicle is being used for business purposes may not be covered by a personal auto policy. That's why it is so important to make sure you have Commercial Auto insurance for any vehicles owned by the business.

Hired & Non-Owned Auto
This insurance protects the business in the case of any incidents involving a vehicle that has been hired by the company to be used for business-related purposes. It also provides coverage in the case your business uses other vehicles which are not property of the business, such as having delivery drivers use their own vehicles. If your company hires vehicles or allows employees to use their own vehicles for business purposes, you will want to consider this insurance.

What is it: This insurance protects the business in the case of any incidents involving a vehicle that has been hired by the company to be used for business-related purposes. It also provides coverage in the case your business uses other vehicles which are not property of the business, such as having delivery drivers use their own vehicles.

Why get it: If your company hires vehicles or allows employees to use their own vehicles for business purposes, you will want to consider this insurance.

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