Who can benefit from equipment breakdown coverage?
This insurance is particularly beneficial for manufacturing, call centers, food service and health care industries. But it’s worth considering for any business that could face income loss due to equipment breakdown.
Commercial property insurance vs. equipment breakdown coverage: what is the difference?
There are a few key differences between commercial property insurance and equipment breakdown coverage.
Standard property insurance typically covers items damaged or destroyed by external events like fire, flood or burglary.
On the other hand, equipment breakdown coverage extends to items not normally included in typical property insurance, such as computers or refrigerators. It also covers business equipment that stops working due to internal issues like parts failure or user error.
Equipment breakdown coverage can also protect against lost income due to the breakdown, a feature not usually included in standard property insurance. This coverage is particularly beneficial for equipment like HVAC units, telephone systems, elevators, manufacturing equipment, and electrical panels.
Exclusions and limitations of equipment breakdown coverage policies
Equipment breakdown coverage is specialized, focusing on failures of the equipment or user errors that cause the breakdown. These policies typically exclude damage caused by external forces such as fire, wind, theft, or flooding, which are usually covered by conventional general liability insurance.
Breakdowns often result in a loss of income for the business, so it’s important to have equipment breakdown coverage in addition to your conventional general insurance policy.
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