What is Equipment Breakdown Cover (and Why Do You Need It)?

When you’re running a business, you may need specialised insurance that helps protect it against issues like theft, damage or malfunctions. One of these covers is equipment breakdown insurance, which you may need depending on the work you do.

As insurance brokers in Bolton, we can help you figure out whether this policy is right for you, and we’ll also search all companies to find the cover you need at a great price. Take a look at why you should consider equipment breakdown cover and the benefits it offers.

What is Equipment Breakdown Cover?

No matter the quality of your machinery and equipment, things eventually break down. If you use electrical or mechanical pieces of equipment in your business, such as boilers, computers, laundry machines, phones, refrigeration units and air conditioning, then you can benefit from this type of insurance.

This is because if something malfunctions or breaks down, you may need to halt operations until you can fix or replace the machine, costing you time and money that can affect your bottom line. For example, if you cater for events but your refrigeration unit stops working, the food inside will spoil, and you’ll be prevented from cooking more food until you have a working fridge or freezer. Equipment breakdown cover, however, can cover the cost of repairing or replacing the machine.

Wear and tear is different from breakdowns. It occurs over time and is associated with things like corrosion, leaks, erosion, and more. A malfunction or breakdown refers more to when equipment simply stops working or something has ruptured or burst on it.

Ensuring the regular maintenance of your equipment is crucial but, sometimes, it’s not enough.

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Benefits of Equipment Breakdown Cover

This policy can greatly help businesses, no matter if they’re just starting out or are already well-established. If something explodes, if part of the ceiling collapses on your equipment, if a machine stops working or if your premises flood, ruining the equipment, you can get your operations up and running as soon as possible if you have equipment breakdown insurance.

It's impossible to predict what can happen, but insurance will cover the costs of your equipment and helps you avoid serious problems with your business.

You can also continue to serve clients sooner rather than later, as well as ensure that any future business is safeguarded. After all, if you can’t complete customer projects, you may miss out on future orders, which can affect your business and your reputation.

What If You Opt Out of Equipment Breakdown Insurance?

If you don’t have this type of cover in place, you’ll have to pay for the equipment repair or replacement out of pocket. This can be costly depending on the work you do – for example, replacing a computer when you’re a freelancer designer will be a lot cheaper than replacing a bulldozer or an industrial laundry machine.

This can lead to a loss of profit. If you depend on phones in your business, an electrical outage will shut down access to your systems, which will stop your operations. You can’t speak to clients and can even lose contracts, for example. Unplanned system downtime is never a good thing!

If your equipment malfunctions but you can’t afford to get it fixed or buy new machines, then you’ll also experience loss of production. For instance, a manufacturer has certain projects to complete so, if a specialised machine breaks down, the company is unable to do the work or unable to fulfil the deadline. This cover can be included in manufacturing insurance, as it’s a useful policy to have when you’re running a factory floor, for example.

So, if you work with electrical or mechanical equipment and are still on the fence about whether to get breakdown cover, speak to us. We’ll help you find a policy tailored to your business needs, so that you can have peace of mind of knowing that your venture is safe in case something happens.

Also, if you already have equipment breakdown cover but haven’t reviewed it in a while, the expert brokers at IC Insurance can easily do it for you, helping you not only find a better option, but also a cheaper alternative.

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IC Insurance Can Help

We understand that you’re busy, so our process is quick and simple, and you won’t have to spend countless hours searching for a policy. From equipment breakdown cover to liability insurance and everything else in-between, we can help.

You don’t have to be an insurance expert to get the right policy, as we take on the hassle and hard work for you. Our handpicked covers are tailored to your individual needs, so that you’re only paying for what you absolutely need.

To take out equipment breakdown insurance, get a FREE, no-obligation quote today and we’ll be happy to advise you on the next steps.

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