| NYC Business Group
Does Your Property Insurance Overlook Equipment Breakdown?
Imagine a scenario where your office building that’s 85% occupied becomes inhabitable when the air conditioning and ventilation systems stopped working! Upon summoning a contractor, he explains that the repair work will take about five days. Since the building is unfit for people to work in, you will receive numerous complaints and since the lease obliges you to credit the rents if the building is inhabitable for a day, you may lose thousands of dollars in repairs and lost rents. It is essential to determine whether your property insurance overlooks equipment breakdown.
Typically, your property insurance will cover any damages resulting from explosions or fires. However, you will not be compensated for lost income or equipment breakdown. If you have equipment breakdown insurance, however, it will reimburse you.
Equipment Breakdown Insurance
Since equipment breakdown insurance is not a substitute for other property coverage, it cannot pay for damages resulting from lighting, fire, or explosions except those caused by floods, earthquakes, pressure vessels, and vandalism. Bottom line, equipment breakdown insurances are required to fill in the gaps left by other insurance policies instead of replacing these insurance policies. It is crucial to note that equipment breakdown insurance policies do not cover mechanical breakdowns resulting from normal wear and tear. Let us help you, make sure you have equipment breakdown in your policy!
Here are some of the claims that can trigger a claim for a piece of equipment:
- Ruptures, bursts, or boiler explosions
- Electrical surges that result in damaging devices, appliances, or wiring
- Events inside steam boilers, pipes, water heaters, or similar equipment that result in damages
It is essential for business owners to avoid overlooking equipment breakdown insurance coverage because they offer numerous benefits. Here are some of the things covered by this insurance policy:
- Repair or replacement costs of an equipment
- Lost business income from an event that’s covered
- The extra expenses you incur from a covered event
- Limited coverages for example when you incur losses from food spoilage in freezers in case they breakdown
Nowadays, most businesses rely on machines for daily operations. Ergo, business owners should consider investing in equipment breakdown insurance to avoid huge losses in the future.