Machine Shops Insurance for Equipment Breakdown
Machine shops and other metalwork manufacturers have some rather unique insurance exposures due to the nature of the products sold and the manufacturing process involved in the type of work performed. The equipment and machinery involved in everyday production is vital to getting jobs done on time and delivered to customers.
Should just one piece of equipment break down and require maintenance it can have an adverse affect on the entire process. This is where machine shops insurance comes in handy. It handles issues associated with equipment breakdown and other exposures, including damage to heavy equipment and all other machinery used in the manufacturing process.
Paying for repairs out of pocket could be costly
These days, with advanced technology, machinery has become more sophisticated and often the time required to obtain replacement parts can make the process much more difficult. These delays may not only be costly, but can also pose the potential for some serious loss of income exposures in the event that a key piece of equipment is shut down for extended periods and production is halted for any length of time.
This expensive equipment is unfortunately exposed to unique risks, such as electrical short circuits and mechanical forces that could render it unusable. Any unbudgeted losses from a breakdown of your equipment can be extremely costly and, in many cases, greatly impact your bottom line.
In addition, your business probably also depends on computers and communications, air conditioning and heating, refrigeration systems, hot water heaters and boilers, perhaps renewable/alternative energy, as well as production and electrical distribution systems. An accidental and sudden breakdown would cause business interruption and lost customers.
Fortunately equipment breakdown insurance covers all of this equipment along with anything electrical that is a vital part of your day-to-day operations. Remember that standard property insurance policies typically exclude losses that equipment breakdown insurance is designed to cover. Specific warranties on equipment are restrictive and typically cover new equipment for a determined period of time and also for specific product failures.
This further demonstrates the value, and the need for, machine shops insurance for the protection you need for the business equipment that routinely serves both you and your customers. Speak to a qualified agent about any questions or concerns that you may have.