What Businesses in Massachusetts is Equipment Breakdown Insurance Right For?
Any business that relies on equipment which is essential to daily operations may be interested in an equipment breakdown policy. The type of equipment can range from basic machines to highly specialized ones. As long as the equipment necessary for vital operations, an equipment breakdown policy might be appropriate.
Some examples of Massachusetts businesses that might benefit from a policy include:
- Food processing facilities that have specialized machinery
- Retailers that ring up customers via point of sale systems
- Manufacturing facilities that have robotic machines
- Hotels that need air conditioners, furnaces and heaters to keep rooms comfortable
- Assisted living facilities that have HVAC and medical equipment to maintain
What Costs Do Equipment Breakdown Insurance Policies Cover?
If a business suffers a covered equipment malfunction, an equipment breakdown insurance policy might cover the following costs:
- Repair costs paid to service providers
- Emergency repair fees charged by service providers
- Labor costs if employees make repairs
- Inventory and supplies damaged by the malfunction
- Revenue lost because of the malfunction
What Kinds of Malfunctions Do Equipment Breakdown Insurance Policies Cover?
Equipment breakdown insurance policies cover a range of malfunctions, which may include:
- Mechanical failures
- Power surges
- Explosions
- Manual errors
(A particular policy’s coverages will be determined by the policy’s paperwork, and all policies can vary in their coverage.)
Are Equipment Breakdown Policies Identical to Boiler and Machinery Policies?
Equipment breakdown policies are similar to boiler and machinery policies, but there often are differences between the two forms of insurance.
Boiler and machinery policies are so-called because they’ve traditionally insured boilers and machinery. For years, these were the most important (and sometimes only) pieces of equipment that a business had.
In comparison, equipment breakdown policies tend to offer coverage for boilers, machinery and many other types of equipment. Their name reflects their generally broader range of coverages.
As the equipment that businesses are reliant on becomes more varied, equipment policies are slowly replacing many boiler and machinery policies.
What Factors Affect Equipment Breakdown Policies’ Premiums?
Like all insurance policies, equipment breakdown policies’ premiums are based on lots of different factors. Some of the items insurers might consider when setting premiums include:
- Why kind of equipment is being insured
- How the equipment is used in daily operations
- How many pieces of equipment are being insured
- What coverages and limits a business selects
How Can Massachusetts Businesses Get Equipment Breakdown Coverage?
As a specialized form of insurance, equipment breakdown policies have unique terms, conditions, definitions and exclusions that aren’t found in many other insurance policies. For help finding a policy and understanding all the language that governs its protections, Massachusetts businesses should contact an independent insurance agent who is familiar with equipment breakdown coverage. Such an agent will be able to help with assessing a business’ coverage needs, obtaining quotes for policies and comparing policies’ protections.
