Equipment Breakdown Coverage in Vermont
What is Equipment Breakdown Insurance?
Most businesses in Vermont rely on vital equipment that must be immediately fixed if it ever breaks down. Delays in repairs can interfere with operations, possibly causing a decrease in revenue on top of any repair costs. For many businesses, the potential revenue losses and repair costs of a major equipment malfunction could be devastating. Equipment breakdown coverage helps businesses prepare for certain potential equipment breakdowns so that they don’t cause a major financial strain.
Equipment breakdown insurance is a unique form of insurance that helps pay for the repair of covered equipment that breaks down. A policy, depending on its terms and conditions, may cover:
- The cost of repairing or replacing broken equipment
- Any emergency service charges assessed for off-hours repairs
- The labor and time needed to repair equipment
- Goods that are damaged as a result of the breakdown (e.g. food that spoils if a fridge malfunctions)
- Revenue lost due to a halt in critical operations
What Vermont Businesses Should Consider Equipment Breakdown Coverage?
Since almost every business relies on at least some vital equipment, the vast majority of businesses in Vermont might benefit from equipment breakdown coverage. Both businesses that have simple equipment and those that have highly complex equipment might want coverage if their equipment is vital to operations or would cost a lot to fix. A few examples of particular businesses that might want an equipment breakdown policy are:
- Retail stores, which rely on POS systems and cash registers
- Restaurants and other eateries, which rely on lots of kitchen equipment
- Offices, which rely on computers, scanners, copiers, and printers
- Doctor’s offices and hospitals, which rely on lots of medical equipment
- Hotels, bed and breakfasts, and lodges, which rely on heat, water, and similar systems
Many of these types of businesses would be significantly affected by a major equipment breakdown. Even if they were able to afford the repair, the lost revenue could make paying upcoming bills difficult. Additionally, any poor reviews left by disgruntled customers would have a lasting effect on business.
What Types of Equipment Do Equipment Breakdown Policies Cover?
Because businesses rely on many different types of equipment, equipment breakdown policies can be adjusted to provide coverage for lots of different equipment. Depending on a particular policy’s terms and conditions, it might provide coverage for any of the above-mentioned items, as well as just about any other type of important equipment.
What Sorts of Breakdowns Does Equipment Breakdown Insurance Protect Against?
Again, precisely what breakdowns a particular policy covers depends on the policy’s terms and conditions. An equipment breakdown policy might offer coverage for the following causes of malfunctions:
- Power surges and electrical arcs
- Mechanical failures
Are Equipment Breakdown Insurance and Boiler and Machinery Insurance the Same?
Many equipment breakdown policies and boiler and machinery policies are similar. In fact, some insurance companies are transitioning their boiler and machinery policies to equipment breakdown policies. There are two small differences between equipment breakdown, and boiler and machinery insurance, however.
First, equipment breakdown policies tend to have language that’s slightly broader and more descriptive than that found in boiler and machinery policies. For example, a restaurant’s equipment breakdown policy might include freezers, refrigerators, ovens, stoves, ventilation systems, and cash registers among its list of covered items. A boiler and machinery policy, in contrast, likely would have more narrow language that didn’t describe as much equipment.
Second, equipment breakdown policies typically have broader coverages than boiler and machinery policies. As equipment breakdown policies’ language is adapted to describe the vital equipment that a particular business relies on, the policy’s coverages are usually expanded slightly beyond what boiler and machinery policies protect.
How Can Businesses in Vermont Get Equipment Breakdown Coverage?
Businesses in Vermont can get help looking for equipment breakdown coverage by contacting an independent insurance agent who specializes in commercial insurance. An independent agent can help a business consider what equipment it should insure, and then they can request quotes for equipment breakdown insurance policies that will insure that equipment.