What Businesses in New York Can Benefit from Equipment Breakdown Insurance?
Almost any business in New York that relies on equipment to perform essential business functions may benefit from the protections that equipment breakdown insurance can provide. This includes everything from retail stores, even if they have a relatively simple point-of-sale system, to hospitals, which rely on many complex systems to provide care for patients. Some other examples of businesses that might want this type of coverage are:
- Manufacturing companies and wholesale distributors
- Convenience stores
- Office buildings
- Auto repair shops
- Doctors and dentists’ offices
While almost any kind of business may want this type of coverage, equipment breakdown insurance is especially important for businesses in service industries, such as restaurants, bars, and nightclubs (as well as hotels, inns, bed and breakfasts, and spas). These businesses will not only lose income if vital equipment breaks down, but their reputation can also quickly suffer. Just a few comments from people on social media or review sites could deter others from coming in the future and have a lasting effect on business. To minimize any negative impact, service-oriented businesses should do everything to make customers happy when equipment breaks down -- and get the equipment repaired as quickly as possible.
What Kind of Equipment Failures are Covered by Equipment Breakdown Insurance?
Exactly what types of malfunctions are covered by a specific equipment breakdown policy depend on the policy’s terms and conditions. Some causes of breakdowns that a policy might cover include:
- Operator error
- Electrical arcing or power surges
- Mechanical breakdown
Is Equipment Breakdown Coverage the Same as Boiler and Machinery Insurance?
Equipment breakdown policies are similar to boiler and machinery policies. In fact, some insurers are replacing their boiler and machinery policies with equipment breakdown policies. There are a couple of minor differences between the two kinds of insurance, though.
First, the language used in equipment breakdown policies tend to be more descriptive of the equipment that the policy insures. Restaurants, bars, nightclubs, and many other businesses are purchasing these policies, and they’re using the policies to insure much more than a boiler and machinery. In the hospitality industry, businesses are insuring refrigerators, freezers, stoves, ovens, ventilation systems, cash registers, and similar equipment with these policies (depending on the particular terms and conditions of a business’ policy).
Second, the coverages of equipment breakdown policies tend to be slightly broader than those of boiler and machinery policies. As the language in the policies is updated to reflect the equipment that the policies are insuring, the policies often provide protection for more types of equipment.
How Can New York Businesses Get Equipment Breakdown Insurance?
Businesses in New York that aren’t already insured against equipment malfunction should talk with an independent insurance agent in the area. An agent will be able to help a business understand its specific risk exposure and explore what insurance options are available. Once a business finds a policy that provides suitable equipment breakdown coverage, the agent can also help the business purchase that policy.