Companies need safe and working equipment to operate efficiently and generate revenue. In fact, some organizations rely exclusively on a few pieces of equipment to run their entire business.
Following a breakdown, major losses can occur, and many organizations turn to equipment breakdown insurance (sometimes referred to as boiler and machinery insurance).
Take a look at the following case study on how Equipment Breakdown Insurance was able to protect a company when their equipment suffered a breakdown:
The company: A metal cutting company.
Equipment failure is a broad risk—one that can affect organizations of all kinds. What’s more, equipment failure isn’t always the result of a specific catastrophe, and many events that lead to a breakdown are out of a company’s control.
Recently, a power surge caused by a major storm destroyed two circuit boards at a metal cutting shop. This unexpected outage left the business without the necessary machinery to continue operations.
Furthermore, in order to meet production deadlines, shop workers had to travel to the company’s sister location. Between the lost time, travel expenses and repair costs, the organization experienced $52,000 in losses—all from just one storm.
Equipment breakdown insurance in action:
Equipment outages and breakdowns are not generally covered under standard commercial insurance policies. Instead, organizations should acquire comprehensive equipment breakdown insurance to cover the cost to repair or replace damaged equipment.
Thankfully, equipment breakdown insurance reimburses companies for lost time, which can prove invaluable following a sudden outage.
Find Out More:
Equipment breakdown coverage is a form of property insurance designed to protect a company’s mechanical, electrical and computer equipment from unexpected breakdowns.
These policies are flexible, and help organizations recoup financial losses related to property damage, business interruption and spoilage.
Download a copy of our “Coverage in Action: Examples of Equipment Breakdown Insurance at Work” guide to see how these policies can support and protect your business: