Ten reasons why you should consider machinery insurance
When it comes to plant and machinery insurance and machinery business interruption insurance, there are many misconceptions. Consequently, businesses need to be covered and able to meet the costs for unexpected breakdowns, damage or loss.
Typical reactions to this type of insurance include: “Aren’t these policies designed for large manufacturers with processing equipment?”, “These policies don’t include many risks that my business faces” and “Isn’t this cover included as part of my warranty?” Here, we look at ten reasons why you should consider machinery insurance and machinery business interruption for your business.
- Your property policy will typically cover fire, flood and theft. Still, you may require additional insurance for mechanical failure, electrical short-circuiting or motor burnout, or for damage resulting from an accidental event, explosion or collapse.
- Cover can be tailored to suit businesses of all sizes, from a small manufacturer to a large commercial risks.
- Machinery business interruption policies can be extended to cover damage caused by events beyond your control, such as third-party damage to water pipes or flooding of a local substation.
- Unlike a property policy, a machinery policy can cover operator errors, for example, if a machine has been set up incorrectly and incurs damage as a result.
- You may be able to receive money before you are trading again – in the case of Business Interruption, ‘payments on account’ are available before the end of the indemnity period.
- Cover can include interruption due to the failure of the building management system, which many modern office buildings are dependent on to control the working environment.
- Cover can help you meet leasing company requirements, which typically state it’s your responsibility to repair or replace machinery that is damaged or destroyed while in your care.
- Business Interruption cover can safeguard your financial stability, important protection, given that many firms may start to have serious liquidity problems within a few weeks of essential machinery being unavailable.
- Depending on the cover provided, additional costs to avoid or minimise finance loss, such as overtime or temporary workers’ wages, can be paid.
- Regular inspection and maintenance programmes are no guarantee – damage can still happen, with catastrophic consequences.
Talk to TMD
The fact is that many standard property or business interruption policies don’t cover unexpected costs incurred by breakdown, loss or damage to plant and machinery, and you may be unable to meet the costs of the repairs required to get back up and running. Please get in touch to learn more about these insurances and whether your business needs to have them in place. We have many years of experience advising businesses on their insurance requirements and can ensure you have the necessary cover in place for your needs.
Our business is your protection, so to ensure your plant and machinery are properly insured, please give us a call on 01992 703 000 or email insurance@mcdonaghs.co.uk