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.