What You Should Know About Business Equipment Insurance
Depending on the type of business and size of business, the number and type of business equipments will vary. A small advertising agency will consist of equipments like computers, printers, scanners and much more. A medium sized car accessory manufacturing company would have heavy machinery like roll forming machines, ultrasonic cleaners etc. Whether it is a small business or a medium sized business, any damage to the equipments can lead to disruption of business activity. Similarly, any injury caused by business equipment can have far reaching consequences. This exactly the reason business equipment insurance is important.
Whether you have purchased business equipment or leased it, it is important to have required business equipment insurance cover. Here are some of the important aspects of business equipment insurance that will help you in purchasing the right and applicable insurance cover.
Business equipment insurance covers any damage caused to business equipments or machinery. The damage can be caused due to electrical problems, mechanical breakdown, or any other technical problem. Over and above that theft of equipments can also hamper business operations. If the equipment is having technical problems then you might have to repair it and if it is stolen then you will have to replace it. Either ways, it will not only be an unnecessary expense but can also lead to loss of revenue during the period of its unavailability. But if you have business equipment insurance then it will cover these damages and you will not face loss of income.
Leased equipments
Not all businesses purchase all their equipments. Some businesses just lease out their equipments. The worst case scenario is that you lease out equipment worth $75,000 and it is damaged by fire or electrical short circuit within a week from installation then you will land up with a liability of $75,000 to the leasing company. But if you have business equipment insurance then it will cover this liability.
Inclusions and Exclusions
Most business equipment insurance providers will have their own set of inclusions and exclusions. A provider policy may state that it will offer cover against fire, explosion, lightning, hail, windstorm, smoke, strike, riot, theft, vandalism, flood, malicious mischief, goods in transit cargo coverage, and repair of the equipment among others. In such a scenario, you need to enquire specifically about exclusions. For example: If your business is situated in an earthquake prone zone then it is important to have earthquake cover included.
Specifics
Most providers would broadly mention the damages covered. You might purchase a business equipment insurance policy that covers a broken computer but it might not cover loss of data. These are the specifics that you need to discuss with an insurance provider.
The more informed you are about business equipment insurance, the easier it will be to find the right policy.