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