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Equipment Breakdown and NJ Business Insurance

Every business is different and has its own needs when it comes to insurance. In the manufacturing industry, which provides so many important products for consumers, an equipment breakdown can cause costly delays and seriously impact the earnings of the owners. Most of these operations require complex and vital machinery to produce their goods, and a power surge could possibly cause extensive damage to equipment that would require expensive repairs.

NJ business insurance, and specifically an equipment breakdown insurance policy, will help to pay the costs for equipment failures related to electrical outages and other issues.

Having property/casualty coverage will not cover these costs, as most insurance brokers can explain. This policy doesn’t pertain to damage from internal causes (such as mechanical failure, electrical short circuit or “arcing”) and will not help you in the event that you experience a mechanical failure.


Understanding what a specific policy does and doesn’t cover

It is so important to understand the different types of coverage available and what they will, or will not cover. While mostly large manufacturers were the major purchasers of equipment breakdown insurance (formerly referred to as “boiler and machinery insurance”) it has become an increasingly important part of any sound small and mid-sized business insurance package.

With all of the new technology now in place (which often consists of a lot of fragile electronic and computerized circuits and parts), including computers, machines and other expensive equipment, all of which are subject to breakdowns that can occur more frequently, having the right coverage can truly make or break an organization. Current business practices, such as Internet marketing, make all businesses more dependent than ever on computer systems.

Critical business information often exists only on the Internet, or in online databases, and these cannot be accessed during periods of equipment breakdown. So there are several ways that a business can be impacted, all due to equipment failure or breakdowns. In addition, the fact is that employees are now traveling with many different types of equipment that once was permanently attached to a fixed location, breakdowns often occur away from the workplace, making broader coverage an essential business practice.

Don’t let an unexpected power outage become both, an inconvenience and a financial catastrophe. Speak to an agent today and get the facts about the specific NJ business insurance coverage you’ll need.