The tools, machinery and information technology you use in your business are indispensable. Without them, you cannot satisfy your customers’ demands and, as a result of that, you cannot make any money. If your business equipment was destroyed or damaged, would you be able to fund its replacement from your own pocket? If not, it is time to consider business equipment insurance to protect the results of your hard work.

When you are deciding what kind of cover to choose, consider the risks that you want protection from. Most insurers will typically cover damage caused by natural disasters, as they are incidents over which you have no control. For example, floods, storms, and earthquakes are included in that category. Strikes and riots are also standard insured risks from most providers. Other risks which are often included are theft and fire. Whilst the insured person is not likely to be responsible for these things, there are steps you can take to mitigate the risks.

For example, a prudent business owner will take steps to prevent fire in his premises, and may even be obliged by law to do so. Likewise, most business owners accept the need and desirability to take some security measures to prevent break-ins and theft

Your business equipment is unlikely to be covered by any damage or breakdown caused by lack of proper maintenance, or by wear and tear. Likewise, any concerns you have about defects in the equipment itself should be taken up with the manufacturer.

When you are getting quotes it can be useful to draw up an inventory of the equipment you have. This task can focus your mind to what your equipment is worth, and make you realise how much it would cost to replace without insurance.

If you lease your business equipment, it may be your responsibility to insure it when it is in your possession. Check the leasing agreement carefully. Otherwise you may find yourself liable to replace equipment that isn’t even yours.

Business equipment insurance relates to replacement or repair of the equipment itself. But what about the damage caused to your business while the equipment was unavailable or out of action? Some insurers offer business interruption insurance, which covers exactly this scenario and pays out for some of the profits lost due to an insured risk. It’s always worth asking whether you can get this cover, and whether the provider will offer a discount if they are covering your equipment too.

Tags | business equipment insurance