Equipment Breakdown Coverage in Vermont

What is Equipment Breakdown Coverage?

Many businesses in Vermont have essential equipment that they’re reliant upon. Should this equipment break down, it must be repaired as quickly as possible. Operations often come to a halt when such vital equipment malfunctions. Equipment breakdown coverage helps businesses prepare for and survive potential breakdowns of essential equipment.

Equipment breakdown coverage is a unique insurance coverage. Rather than offering liability protection for certain incidents or property coverage for perils like theft, this coverage insures equipment against covered breakdowns. If a business suffers a covered equipment malfunction, an equipment breakdown policy might help pay for:

  • Repairs needed to get the equipment working properly again
  • Emergency services charges for repairs made during non-business hours
  • Time and labor used to repair equipment if the repair is may in house
  • Goods that are damaged because of the breakdown (e.g. spoiled food if a freezer malfunctions)
  • Lost revenue that’s caused by a pause in operations

What Kinds of Breakdowns Are Covered By Equipment Breakdown Insurance?

As is the case with any type of insurance, the exact incidents that a particular equipment breakdown insurance policy covers depend on the policy’s terms and conditions. In general, many policies cover breakdowns caused by:

  • Operator errors
  • Mechanical failures
  • Power surges
  • Explosions

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What Businesses in Vermont is Equipment Breakdown Insurance Right For?

Any business in Vermont that relies on one or more vital pieces of equipment may want equipment breakdown insurance. This includes businesses that have complex pieces of machinery as well as those that have only basic equipment. As long as a piece of equipment is essential to operations, equipment breakdown insurance may be appropriate.

A few examples of specific businesses that could benefit from an equipment breakdown policy include:

  • Retailers, which use cash registers and POS systems to ring up customers
  • Restaurants, which use refrigerators, freezers and cooking equipment
  • Offices, which use copiers, scanners and computers
  • Hospitals, which use many different types of medical equipment
  • Hotels, which use heaters, air conditioners and hot water heaters to keep guests comfortable

What Sorts of Equipment Do Equipment Breakdown Policies Cover?

Equipment breakdown policies can cover many different kinds of equipment. In most cases, Vermont businesses can find an equipment breakdown policy that will cover just about any vital piece of equipment.

Are Equipment Breakdown Policies Different from Boiler and Machinery Policies?

Equipment breakdown policies are similar to boiler and machinery policies. In fact, the two kinds of policies are so similar that some insurance providers are fading out their boiler and machinery policies, and only offering equipment breakdown policies.

Equipment breakdown policies aren’t exactly the same as boiler and machinery policies, though. Generally speaking, equipment breakdown policies have slightly broader coverages that protect more kinds of equipment than boiler and machinery policies offer coverage for.

What Factors Impact Equipment Breakdown Policies’ Premiums?

As is the case with other insurance policies, many factors influence how much equipment breakdown policies cost. A few that may impact how much a particular business pays of a policy are:

  • The number of pieces of equipment being insured
  • What type of equipment is being insured
  • How the insured equipment is used
  • What coverages and limits a business selects

How Can Businesses Get Equipment Breakdown Coverage?

To find out exactly how much equipment breakdown coverage will cost your company and purchase a policy, contact an independent insurance agent. An independent agent in Vermont will be able to request quotes from several insurers in the state that offer equipment breakdown policies. Once the agent receives these quotes, they can help you compare the different policies available and select the one that works best for your business.

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