Equipment Breakdown for Manufacturers
For many manufacturers, the most important asset in the building is the machine that keeps production moving. Equipment breakdown coverage addresses certain sudden internal mechanical, electrical and pressure-system failures that traditional property coverage may exclude.
Build the program around how the operation actually works.
Manufacturing insurance is not one policy. The right structure depends on the product, process, property, people, contracts and potential severity of a loss.
Important distinctions before renewal.
Is equipment breakdown the same as commercial property?
No. They complement each other. Property insurance typically responds to covered external causes of loss; equipment breakdown is designed for certain internal mechanical, electrical or pressure-system failures that property forms commonly exclude.
Can equipment breakdown include lost income?
Coverage can be structured to include business income and extra expense resulting from a covered equipment breakdown, subject to the policy terms and selected limits.
What equipment should manufacturers review?
CNC machines, presses, lasers, compressors, electrical systems, boilers, refrigeration, production controls and other equipment whose failure could materially interrupt operations are good places to start.
Coverage descriptions are general. Actual coverage depends on the specific policy forms, endorsements, limits, exclusions and facts of a claim.
Keep digging into the exposures that matter.
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