As technology develops, more and more businesses rely on computers and other electronic devices in order to maintain daily operations. Not to mention, businesses, for years, have used heating/cooling systems, phone systems and break room appliances. But what would your business do if this equipment malfunctioned or if a power surge zapped a company server?
Business owners often believe that such damages are covered by their property insurance. However, if you study the details of your policy, you’re likely to find that that’s not the case. Property insurance focuses on external damages, such as fires, theft or weather-related incidents. But internal incidents, such as electric arcing or mechanical or motor failure, are typically excluded.
Just because property insurance may not cover these damages doesn’t necessarily mean you have to pay for the high expenses out of pocket. In fact, there’s another option for a more well-rounded insurance portfolio.
Equipment breakdown insurance is a key component of business insurance portfolios because it provides valuable protection for your electronic and mechanical equipment. However, keep in mind that this policy is designed to cover hardware; software coverage is likely to fall under cyber risk insurance. Equipment breakdown insurance, depending on the details of your policy, may also cover a loss of income that results from failed equipment causing a business interruption.
Your independent agent can help determine if equipment breakdown insurance is right for your business insurance portfolio, along with any additional policies to cover your business’ risks and needs.
We’ll help you find the coverage you need. Call Pan American Insurance at (915) 562-0009 for more information on El Paso business insurance.