Equipment Breakdown Coverage in New Hampshire
What is Equipment Breakdown Coverage?
Many New Hampshire businesses rely on equipment that’s vital to their regular operations. Should this machinery malfunction, the effects could be multi-fold as operations are brought to a halt and expensive repairs ensue. Equipment breakdown coverage offers help for covered breakdowns of essential machinery.
Equipment breakdown coverage policies are specialized commercial insurance policies. Rather than offering coverage against common physical perils, such as vandalism, fire, wind and similar risks, these policies protect against certain breakdowns. Few other types of policies offer a similar type of protection.
What New Hampshire Businesses Need Equipment Breakdown Protection?
There are many businesses in New Hampshire that might benefit from having equipment breakdown protection. Almost any business that has expensive and essential machinery may want to insure the machinery against potential malfunctions.
The following are just a few examples of how some businesses in the state might use this coverage:
Food processors may want coverage for their specialized machinery
Retailers may want coverage for their point-of-sale computers and systems
Manufacturers may want coverage for robotic machines used in factories
Apartment Complexes may want coverage for HVAC and other equipment
Restaurants may want coverage for their kitchen appliances
Warehouses may want coverage for their inventory management system and product-moving equipment
What Expenses Will an Equipment Breakdown Policy Cover?
As is true with most insurance policies, the exact expenses that a particular equipment breakdown policy will cover are determined by the terms, conditions and exclusions of the policy. Some examples of what a policy, depending on its terms, might help pay for following a covered claim include:
The cost of repairing the malfunctioning equipment
Any emergency or after-hours fees charged to have equipment repaired promptly
Any labor costs associated with employees completing the repair in-house
The value of supplies or inventory that are lost because of the malfunction
Any revenue loss caused by the malfunction
What Sorts of Malfunctions Will an Equipment Breakdown Policy Cover?
Again, exactly what an equipment breakdown policy covers depends on the policy’s terms. A policy with robust protections may cover explosions, power surges, mechanical failures, manual mistakes and more.
How Are Equipment Breakdown Policies, and Boiler and Machinery Policies Different?
While the two types of policies are similar at many points, equipment breakdown policies tend to offer broader protections than boiler and machinery policies. Traditional boiler and machinery policies typically cover what the name implies: boilers and machinery. Equipment breakdown policies usually can cover these items, as well as an array of other equipment.
Because businesses today rely on all sorts of equipment, equipment breakdown policies have slowly become more common than boiler and machinery policies. The latter used to be more popular when boilers and physical machinery were primarily what kept business’ operations proceeding.
How Can Businesses in New Hampshire Get Equipment Breakdown Coverage?
Equipment breakdown protection is available both as a stand-alone policy and as part of a package policy that combines this protection with other important coverages. Commercial package policies, in particular, frequently can be designed to include this coverage. What the preferable option is for a specific business typically depends on that business’ situation, risk exposure and protection needs.
For help analyzing your business’ situation and finding the right insurance protections, contact the independent insurance agents at HPM Insurance. Our agents have the expertise necessary to make informed recommendations regarding equipment breakdown coverage and other commercial coverage options. Once you select the coverages you want, they can then find the best available option by searching offerings from many insurance companies in New Hampshire.