Equipment Insurance
Quick answer: Equipment insurance helps pay to repair or replace business equipment that is damaged, stolen or breaks down, and can be paired with business income coverage for the time you cannot operate. Sudden mechanical or electrical failure is handled by equipment breakdown coverage, and tools and equipment that travel to job sites are usually insured on an inland marine form.
Any business that relies on common or specialized forms of equipment understands that you can’t work successfully without it and equipment insurance is necessary to remain profitable and successful. Consider whether or not your business could afford to replace stolen, or damaged equipment. Without insurance, even something simple like a power surge, employee error, or water damage from a broken pipe could quickly become detrimental to your business.
Equipment insurance covers you when equipment breaks down. The insurance can cover the cost to repair or replace the equipment, as well as other costs involved in getting your business operational again. Your computers and electronics, for instance, are considered equipment and can be covered in the same policy.
To protect your business more, you may also consider Loss of Income Insurance. Loss of business income should be part of a proper policy in case loss occurs due to equipment failure. Insurance can cover the cost to replace spoiled stock or raw material that was ruined by an equipment malfunction. Equipment insurance or business interruption insurance can cover the loss of income due to something as indirect as a website going down for an extended period if you depend on the site for customer orders.
Contact a Lions & Coventry Insurance Services agent today to learn more about equipment insurance. We can show you how to keep your business running in the event of an equipment failure.
Talk to a licensed producer: call (916) 967-7715 or request a quote online. Lions & Coventry Insurance Services, Est. 2009, CA Lic. #0G22084.
Equipment insurance FAQ
What does equipment insurance cover?
It can cover the cost to repair or replace equipment, including computers and electronics, plus other costs of getting your business running again. Depending on the policy, it can also cover stock or raw materials spoiled by an equipment failure and, with business income coverage, income lost while you are shut down.
What is the difference between equipment breakdown and other equipment coverage?
Equipment breakdown coverage responds to sudden mechanical or electrical failure, such as a power surge or a motor burning out, which standard property policies usually exclude. Damage or loss from fire, theft or vandalism is generally covered under commercial property or inland marine coverage for the equipment.
Does equipment insurance cover tools I take to job sites?
Equipment that leaves your premises, such as contractor tools and mobile equipment, is usually insured on an inland marine (contractor’s equipment) form rather than a building property policy. See also handyman equipment insurance.
What information do I need for an equipment insurance quote?
Have a list of your equipment with replacement values and ages, where it is kept and whether it leaves your premises, how it is secured and maintained, how long you could operate without it, any lease or lender requirements and your prior claims history.
What drives the price of equipment insurance, and how do I get a quote?
Price depends on the type and value of your equipment, whether it travels to job sites, how it is secured and maintained, your deductible, any business income coverage you add, and your claims history, so we do not publish rates. Call (916) 967-7715 or send your details through our contact page, and a licensed producer will review your business and shop the coverage with carriers that write business equipment.
Related coverage: Commercial property insurance · Inland marine insurance · Business owners policy · Handyman equipment insurance · Contact us
Brokerage guidance, not legal advice. Coverage depends on the policy form, underwriting and carrier availability.