Equipment Breakdown and New York Manufacturer Insurance

The manufacturing industry provides so many important products for consumers. Many of these operations require complex and vital machinery to produce their goods. Something simple, such as a power surge, could quite possibly cause extensive damage to an important piece of equipment that would require expensive repairs, not to mention the loss of production while the equipment is out of commission.

Manufacturer insurance in New York, and specifically an equipment breakdown insurance policy for businesses, will help to pay the costs for equipment failures. Don’t mistakenly think that regular property/casualty coverage will cover the costs, as most insurance brokers will explain that this policy actually doesn’t cover damage from internal causes such as mechanical failure, electrical short circuit or “arcing” (faulty wiring or motor burnout).

A property/casualty policy only covers damage to equipment from “external causes.” For example, damages that are the result of a fire, a flood or a tree falling on the roof of the building that causes damage to property owned by the company would be covered.

This is why it is so important to understand the different types of coverage available and what they will, and 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-business insurance package.

With new technology (which often consists of a lot of fragile electronic and computerized circuits and parts), computers, machines and equipment are subject to breakdowns that can be more frequent, as well as much more costly than the older, more traditional mechanical equipment. Current business practices, such as Internet marketing, make all businesses more dependent than ever on computer systems, along with other valuable manufacturing equipment.

Critical business information often exists only on the Internet, or in online databases, that cannot be accessed during periods of equipment breakdown. So there are several ways that a business can be impacted due to equipment failure or breakdown. Adding to the concerns is the fact that employees are now traveling with many types of equipment that were once permanently attached to a fixed location, so breakdowns often occur in places other than the ones insured under traditional property/casualty policies.

Don’t let the unexpected power outage become both, an inconvenience and a financial catastrophe. Speak to an agent today and get the facts about the specific New York manufacturer insurance coverage needed.