Imagine running a small business without any machine, it sure is a challenging task! Irrespective of the location of your small business, equipment is the necessity! Whether you have some heavy-duty machines running a construction business or you need a couple of walk-in refrigerators or commercial ovens for your trendy restaurant, your business keeps going with the flow till the machines are running properly. The moment equipment breaks down it causes massive disruption. Instant is fixed and repairing is a must! Fortunately, Equipment Breakdown Coverage is there to save the day!
What is Equipment Breakdown Coverage?
Whenever you are looking and applying for the business insurance there is an additional option resting in the form: Equipment Breakdown Coverage. It is also labeled as boiler and machinery insurance (BM Insurance). If you have BM Insurance, it is relatively easy to repair the damaged piece of equipment or replace a broken one with the new one. Usually, Equipment Breakdown Coverage allows the business managers to cover the repairing cost of the necessary equipment such as air conditioners, security systems, computers and other machines that help you operate your business in the right manner.
Does your business need Equipment Breakdown Coverage?
If your business can’t run smoothly if a machine malfunction, then yes, your business needs it. Nearly every type of business whether it is an office, café, large-scale industry, or a clothing store run from home needs fully functional machines.
Hypothetically speaking, you run a printing business and your deadline is approaching but your breaks down. The only way you can cover the loss and repair broken equipment is if your business account is loaded with money but it is hard to cover these financial losses with disrupting the cash flow. So what can you do instead? Apply and purchase equipment breakdown coverage let the insurance company take care of the loss.
You might think that why I should get Equipment Breakdown Coverage when I already have a Commercial Property Insurance?
Commercial property insurance solely protects your equipment from the fire and storm. On the other hand, BM Insurance has your back in case your equipment refuses to turn on due to accidental damage, operator damage or human error.
Now that you know what it means by BM Insurance and why it is so important for your business, let us explore the nature of equipment breakdown covered by this insurance.
What types of equipment fall under Equipment Breakdown Coverage?
Each lending company has its criteria, but most of them cover the following pieces of equipment:
- Communication equipment and security systems.
- Conditioning systems (air and heat)
- Electrical cables and solar panels
- Mechanical equipment such as motors, vehicles, and elevators
- Manufacturing Equipment
- POS Devices
A machine does not breakdown due to one reason there are multiple reasons behind equipment malfunction. BM Insurance can cover the following types of losses:
Let us say your commercial oven breaks down; equipment breakdown coverage will cover the consultancy fee of the technician. In addition to this, BM Insurance also covers the rent of the rented equipment until your equipment repairs.
If your equipment needs to be replaced, BM Insurance will cover the cost of replacement as well. The insurance company either offers you enough money to replace the equipment or get you similar equipment by themselves. It varies from the lender to the lender, so you have to go through their policies and choose accordingly.
- Inspections by local government and food authority
Equipment Breakdown Coverage can help you cover the loss caused due to the inspection rounds the government and food restaurant. If you run a restaurant, then there are more chances of it to happen.
- Loss of annual revenue
If you are facing loss in the annual revenue due to malfunction of the equipment, BM Insurance will reimburse you. But your insurance company might need some proof, so keep track of all the numbers with the help of the accounting software. If your manufacturing industry faced loss due to the electricity shortage, file a claim.
Almost every sort of causality is covered by the Equipment Breakdown Coverage except software system, low-key mishaps, and damage caused by natural disasters.
Now moving on to the most important question: How much does Equipment Breakdown Coverage cost?
Mostly when you ask for the final cost of the insurance company, the cost of the Equipment Breakdown Coverage is already added into the total cost of the insurance. Assuming if a business manager has a piece of equipment worth one million dollars he or she will pay approximately $15 to $30 per year to enjoy the BM insurance.
You can even ask for a quote from your potential lending company. Keep factors such as total cost the equipment, the nature of the insured equipment and condition of the office in your mind. Repairing costs a lot of money, so getting a BM insurance is a nice option.
What are the best places that are offering Equipment Breakdown Coverage?
Exercise caution while applying and purchasing Equipment Breakdown Coverage, have a look at the following legitimate lending companies:
- The Hartford
- Hartford Steam Boiler
- Nationwide Insurance
If a small business already has a company and property insurance, then instead of applying for a separate Equipment Breakdown Coverage first check for the clause of BM Insurance in your insurance policy.
Lastly, all the businesses that rely on equipment need Equipment Breakdown Coverage to keep generating enough annual revenue and run a profitable business even when in crisis. For more information, tips and tricks to run a successful business, follow us on Facebook and Twitter (@Onlinecheck). If you have any question, feel free to call us on our toll-free number at (833) 827-4412; we will help you every step of the way.