The Role of Equipment Breakdown Insurance for Contractors: Minimizing Downtime

Written By Charlotte Insurance on August 1, 2023. It has 0 comments.

The Role of Equipment Breakdown Insurance for Contractors Minimizing Downtime

If there’s one thing that contractors need, it’s their equipment. Everything from nail guns and cordless drills to power washers and pneumatic lifts are necessary to get those home improvement projects done. But what happens when something breaks? Not only will the piece of equipment need to be repaired, but the project could be on hold for days waiting for that generator to work again. Thankfully, contractors can take out equipment breakdown insurance in order to minimize their risks. Here’s how this kind of insurance works.

Covering Things That Property and Liability Insurance Won’t

The entire point of equipment breakdown insurance is in its name. This type of insurance is designed to cover your electronic equipment. If it breaks due to wear and tear, age, operator error, or any other factor that doesn’t involve the weather (fire, flood, etc.), then your equipment breakdown insurance may kick in. Once you call in a claim, the costs of repairs, as well as any money lost due to the delay, may be reimbursed by your insurance company.

Property and liability insurances on the other hand are very different policies. The former is designed to cover your equipment when it’s kept in storage at your business’ property. For example, if the building burns down with your equipment in it, your property insurance may cover the loss. Liability insurance will pay for any damage caused by your employees on the job, such as existing broken windows or damaged walls, due to their negligence or error.

What Types of Equipment Are Usually Covered?

In addition to having a general understanding of what equipment breakdown insurance is, you also need to know what it covers. The following are the main types of equipment that a contractor deals with on a regular basis.

  • Pressurized Equipment – An air compressor and the accompanying tools, which make things go fairly quickly on a job site, often fall under the coverage umbrella of your equipment breakdown insurance policy.
  • Mechanical Tools – Tools like reciprocating saws, sanders, and more all require electricity to run, making them fall into the “mechanical” category. These tools are prone to breakage due to general use and not having them on hand can lead to delays.
  • Electrical Equipment – Something has to make those mechanical tools and pressurized equipment run. Although there are plenty of other types of equipment that are included in this category, the ones that contractors use most include generators and electrical cables.

In addition to those types of equipment, others, such as air conditioners, boilers, communication systems, and computers are also covered by equipment breakdown insurance. However, contractors tend to have tools and other things that fall into the three categories described above.

Have Questions? Contact Charlotte Insurance

Do you need equipment breakdown insurance? Contact Charlotte Insurance. Our agents can explore and explain all available options to you and put together the customized coverage plan that your business needs.

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