Commercial property insurance protects your business against equipment and machinery being damaged by fire, flood and other external risk. But, it doesn’t cover risks such as mechanical failure, breakdown, wiring problems or short circuits.
Such breakdowns can bring your business to a grinding halt as you deal with both the cost and time spent repairing or replacing. Systems breakdown policies always cover the repair and replacement costs, and you’ll often have the option to pay a higher premium to protect against loss of business during the downtime.
A systems breakdown policy can cover all sorts of equipment used in your business–such as elevators or heating–rather than just the machinery your business uses while manufacturing. Policies usually cover computer equipment, but will only pay out for physical hardware damage rather than software failure or malware.
It’s worth noting that, while manufacturer warranties may pay for repair costs or provide replacements in some circumstances, they usually aren’t as extensive as with systems breakdown coverage. For example, the warranty might not cover accidental damage from human error, such as overloading electrical circuits. But, systems breakdown insurance (or mechanical breakdown insurance) will cover this type of incident.
Think a systems breakdown policy is right for your business? We can help you find a policy that works best.