Business Insurance Brokers Explain What Equipment Breakdown Insurance Covers
Los Angeles, California (prsubmissionsite) December 26, 2019 – MFE, a business insurance broker, recently created a blog that explains “what does equipment breakdown insurance cover.” If your business requires any kind of mechanical gear to operate, this type of insurance is essential to protecting your investments.
Equipment breakdown insurance is a type of business insurance that covers the cost to repair broken equipment, as well as the loss of income and inventory as a result. For example, if you operate a laundromat and one of your machines stops working, equipment breakdown insurance will pay for the cost of a new machine and reimburse you for any income you lost as a result of the breakdown. It can also pay for income lost as the result of a power outage and subsequent slowdown of business if you’re unable to process payments for an extended period of time. Commercial business owners in a range of industries, including manufacturing, client services, and technology, can avoid paying for repairs out of their own pockets and maintain their sales projections thanks to equipment breakdown insurance.
There are five categories of equipment that a breakdown insurance policy covers. These consist of mechanical, electrical, computers and communications, HVAC and refrigeration systems and boilers and pressure equipment. For each of these categories, insurance will pay for the cost to repair or replace the item, including time and labor; income lost; spoiled products, particularly food and other perishables; and expenses incurred during the restoration period. Equipment breakdown insurance does not cover software or damage caused by external forces, such as a fire. It also only pays for expenses up to your policy limit, so speak to an insurance broker to ensure that you’re properly covered for major incidents.
Contact MFE Insurance for more information about equipment breakdown insurance or to inquire about the agency’s comprehensive business insurance coverage, including worker’s compensation, errors and omissions, and general liability insurance. MFE specializes in providing customized insurance packages to restaurants, nightclubs, film production companies, and other businesses within the entertainment space, and its experienced insurance agents can assist you in choosing the right policies for you based on your equipment, number of employees, and type of business. The brokerage can be contacted at 213-266-7990 or online at https://www.mfeinsurance.com. MFE is headquartered in Los Angeles and serves clients across the country.