No matter what industry you’re in, an unexpected equipment failure can prevent you from doing business and making money. In these instances, having equipment breakdown coverage as part of your business insurance policy gives you the resources to overcome the setback and continue working. Below is an overview of this insurance addition and how it can help you keep the business running smoothly.

What Is Equipment Breakdown Coverage?

Equipment breakdown coverage is an optional component of a business insurance policy. The purpose is to cover the cost of repairs and replacements of damaged or malfunctioning equipment. Depending on your policy, it may also cover lost revenue due to equipment failures or power outages.

For instance, if you own a coffee shop or restaurant, a simple power outage can make it impossible to cook food, run point-of-sale systems, or even light the space. An outage that goes on for several days may also result in spoiled inventory, potentially costing you even more. Equipment breakdown coverage will compensate you for these losses.

What Situations Does It Cover?

This business insurance policy covers mechanical issues, such as burnt-out motors, coolant failures, malfunctioning, and damaged manufacturing equipment. You may also file a claim for faulty electrical equipment, as well as computer software or servers that are no longer operable. For customer-facing businesses, such as a hotel, you may even receive compensation for HVAC breakdowns or unexpected boiler issues, as these problems prevent clients from staying at your building.

How Is Equipment Breakdown Different From Property Coverage?

Business property coverage protects your building location, machinery, and assets from external threats, such as a fire or flood. On the other hand, equipment breakdown insurance covers internal issues and random accidents. When you combine these policies, you have comprehensive coverage that protects your investments from almost any peril. This ensures that you have the necessary resources to continue operating the business and paying employees, even after a severe accident.

For over 30 years, business owners throughout Scottsboro, AL, have been relying on Goggans Insurance to protect the value of their investments. Their team provides personalized service to businesses in every industry by tailoring policies to your unique needs. Visit the website for more information about their business insurance services, get tips and updates on Facebook, or call (256) 574-3440 to request a quote.