Equipment Breakdown and New York Business Insurance

Once mostly carried by large manufacturers, equipment breakdown insurance (often referred to as “boiler and machinery insurance”) is an increasingly important part of any sound New York business insurance package. This is because most businesses depend heavily on the new technology, such as fragile electronics and computerized equipment, which is subject to breakdowns that can cause expensive delays.

In addition, maintenance and repairs tend to be more frequent and costly than traditional mechanical equipment. More and more, new business practices, such as Internet marketing, make all businesses more dependent than ever on computer-based systems.

For many companies in the New York area, critical business information often exists only on the Internet, or in online databases that cannot be accessed during periods of equipment breakdown.

 

Breakdowns not limited to in-house work scenarios

 

Employees now spend a great deal of time traveling to visit clients and vendors, with many types of equipment that were once permanently attached to a fixed location, so breakdowns often occur in places other than the ones insured under those traditional property/casualty policies.

One way to think of equipment breakdown coverage is as a type of accident, health and disability insurance for the equipment that the company owns. If business interruption is a potential hazard that threatens the livelihood of a company, then owners should seek the advice of a leading provider of equipment breakdown insurance to provide for their needs to prevent losses that may occur in any given situation. It should also be noted that commercial property insurance policies often exclude losses related to equipment breakdowns, unless the customer specifically asks for the coverage.

For the sake of clarity, business owners should understand that equipment breakdown coverage is “hardware” insurance, not “software” insurance. The policy provides protection when there is some sort of physical damage, such as a power surge that destroys the computer’s hard drive. Computer failures due to software problems, such as “bugs” or viruses, are not covered under this service.

Note that equipment breakdown coverage covers the cost of repairing and replacing the damaged equipment, and frequently includes “business interruption” and “service interruption” coverage, which will allow for coverage against loss of business or income due to computer-related issues. If these additional coverages are not included in the New York business insurance policy, speak to an agent about this important resource.

 

photo credit: kchbrowncc

Frank

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