Is Equipment Breakdown The Same As Boiler And Machinery?

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What is Equipment Breakdown Insurance?

As you may very well know, insurance policies have exclusions. A standard exclusion in a Commercial Property insurance policy is malfunctions or damages caused by equipment that your business relies on to get products to your customers. If your business is dependent on equipment and it fails to do its job, this can leave your customers disgruntled and your business in a potential hard spot. Whether you have refrigerators to store products, machines that help create your products, or even computer equipment to test products or keep blueprints or other vital documents, Equipment Breakdown insurance is essential coverage for you to consider.

The equipment breakdown exclusion is a huge gap in coverage for many business owners who are dependent on equipment to be able to produce or store products. Equipment Breakdown insurance was developed to be able to cover this gap and is also known as Boiler and Machinery insurance. When shopping around for this type of policy, make sure to be aware of the inclusions and exclusions to ensure that your specific equipment is covered.

What is Boiler and Machinery Insurance?

Although you may hear the words Boiler and Machinery, they mean virtually the same as Equipment Breakdown. However, some insurance companies still have the older version of this type of policy that may only cover a steam boiler. The chance that you rely on only this type of equipment is rare. However, the cost to repair a boiler could be devastating financially to your business. Regardless of the type of equipment you need to cover, a policy is crucial to help keep your business running.

How are These Insurances Similar?

Both Equipment Breakdown and Boiler and Machinery insurance policies have some similarities.

  • Cost to Repair - Did you know that these policies will cover equipment? While your main concern may be the products so that you can keep moving to satisfy your customers, you will need to pay to fix the equipment. Depending on the type of equipment, this could end up being tens of thousands of dollars, if not more. Protect your business from going under by purchasing an Equipment Breakdown insurance policy.
  • Business Interruption - Certainly the breakdown or explosion of equipment that you rely on for your business will have an impact on your operations. You might need to shut down for some time, resulting in loss of income. Both Equipment Breakdown and Boiler and Machinery insurance will help pay for this loss so that your business can keep running. After all, your customers and vendors will not want just to wait while you get back on your feet. They will expect their products and payment without any interruption.
  • Loss of Goods - Whether a power surge, short circuits, physical damage, or a malfunction, both policies will cover the loss of your product. Imagine if you did not have the coverage, and not only had to recover the damages from the ruined products, but also pay to replace them. Talk about an impact on your cash flow.

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How are These Insurances Different?

Every insurance company will have different coverages within their policies, so it is imperative that you read it and work with an educated agent when you begin to shop around. Most companies, however, have migrated to a standard Equipment Breakdown policy. Some do still have the Boiler and Machinery policy, so just make sure that no matter who you purchase your policy from, the type of equipment you have for your business is what is covered, and not excluded.

Business Insurance

Running a business is challenging enough without having to worry about lawsuits, employee injuries or property damage. Having the right insurance gives you the peace of mind to focus on what matters - running your business.

The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors. CoverWallet's intelligent assessment system will identify the insurance you need based on your specific business, get you a policy that fits your budget, and do it all in less time than you think.

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