It's Not a 'Small Loss' if it's Your Business

Your business may depend on equipment, such as a cooler for flowers.

When you hear machinery and equipment discussed as an available insurance coverage, you may envision huge mechanical or electrical apparatus associated with large-scale operations or massive production floors. Because of this, you may conclude that your family-run flower shop or small- to medium-sized business doesn’t need this type of coverage.

Remember that insurance is about protecting your business from loss, and loss must be considered in the context of your individual situation.

• An unexpected mechanical failure of a small refrigeration system component at an inconvenient time – for example, the day before Mother’s Day if you run a flower shop – may result in several thousand dollars of lost stock. Repair bills could be catastrophic for your business. In financially tough times, the expense may even threaten your ability to stay in business.
• A power surge could destroy or damage the new – but just out of warranty – phone system or computer servers upon which your accounting business depends.

By comparison, a large business may be able to absorb an equipment-related loss of several hundred thousand dollars with nothing more than a few budget adjustments. So, who has the greatest machinery and equipment loss exposure?

When you consider that mechanical breakdown is much more likely than a major fire loss, doesn’t it make sense to consider purchasing mechanical breakdown coverage for your business – no matter the size? The good news: it’s easy and convenient. Coverage can be added through endorsement to your existing commercial policy or, if you prefer, through purchase of a separate policy.

Call your local independent insurance agent to discuss the type and amount of coverage that’s right for your situation.

This loss control information is advisory only. The author assumes no responsibility for management or control of loss control activities. Not all exposures are identified in this article. Contact your local, independent insurance agent for coverage advice and policy service.