As an agent, your clients look to you to provide complete protection for their assets. From home purchases to business liabilities, your knowledge about risks, trends in the industry, and the client’s budget impact your ability to recommend the best coverage options. For commercial clients, you need to explain the value of purchasing equipment breakdown coverage.
Coverage Across Industries
The risks across industries vary, and the impact of broken-down machinery varies by business. A production plant that loses an essential piece of machinery could see assembly lines shut down for days and large orders unfilled. The lost wages, delayed contract fulfillment, and repair or replacement expenses can severely impact the company. Conversely, an accounting firm that loses a computer due to a malfunction could see a backup in file processing. This could result in lost consumer confidence or delayed payments. Each of these situations could have insurance coverage.
Understanding Break Down Protections
It is your job to explain the potential fallout of an equipment malfunction and the possibility of having the resulting losses covered through equipment breakdown insurance. It covers a host of equipment types, though some of the following are the most commonly understood inclusions:
- Production machinery
- Electrical systems
- Air conditioning systems
- Pressure equipment or boilers
- Refrigeration systems
Your clients may not realize that insurance could cover outages or breakdowns of phone systems, security systems, or fire alarms. Educating them on the liabilities of an incident puts a better perspective on the need for coverage.
Understanding Break Down Coverage
The key concern for a client with damaged or non-working equipment is getting the item fixed or replaced as soon as possible to restore normal business operations. However, business owners may struggle to have the needed funds to fix or replace the equipment. It is more than a piece of machinery that is incurring additional costs. There are realities of lost income, spoiled inventory, and time and labor to fix the situation.
This coverage could be applicable for supplementing the business income if a power failure causes a pause in operations. A situation where refrigeration compressors died and caused food spoilage could be covered, both from the perspective of fixing the refrigerator and reimbursing for the lost inventory to have the food products replaced. Make sure your clients understand equipment coverage does not apply to external causes situations, such as a fire or theft. Covered situations are usually limited to internal force situations, such as electrical shorts, motor burnout, mechanical failures, or operator errors.
Be sure to explain the financial significance of equipment breakdown coverage to your commercial clients. This a crucial area of liabilities that many business owners are completely unaware of and unprepared for.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (855) 912-8697 to speak with one of our representatives.