Written by Michael Foote, Insurance and Finance ExpertMichael Foote is the founder of Quote Goat and has over 13 years experience working in the finance, insurance and currency sectors. Since launching Quote Goat he has appeared on TV as well as many of the largest online publications including Forbes, The Telegraph and The Metro. Prior to Quote Goat, he worked in finance in the city for a number of firms including HSBC.
Insurance is something that every business needs. However, there are a lot of different types of insurance out there, making it difficult for businesses to know whether they’re adequately protected or not, tradesmen for example can compare tradesmen insurance quotes here. One type of insurance you’ll definitely want to invest in if you own large, expensive equipment is building machinery insurance.
What is building machinery insurance?
Out of all of the different types of business insurance available, machinery insurance is one of the lesser known. However, it’s extremely important for companies which own and operate large, expensive machinery.
While each policy will be slightly different, generally machinery insurance protects you if any of your equipment breaks down or is stolen. This could be down to human error, a fire or a power failure. So many things can go wrong with technology and without protection you could find yourself having to pay out a huge sum to replace or repair any loss or damages.
Some insurance policies will cover specific types of damage caused to machinery. However, they don’t often cover accidental damage. Therefore, by investing in specialist machinery insurance, you have the peace of mind that your machinery is covered from any eventuality.
What are the benefits?
Obviously, you want to save as much money as possible when running a business, so why should you consider investing in building machinery insurance if it isn’t compulsory? The main thing to think about when answering that question is could you afford to replace or repair your machinery if something did go wrong?
Take your CAT generator for example. This important piece of machinery plays a vital role in the running of your business. It literally supplies the power needed to keep your production going. Unfortunately, it’s also pretty expensive, even if you buy it from a competitive company such as SGS Engineering. If the generator broke down, without immediate funds there to repair or replace the machine, your production would need to be halted. This would have a significant impact on your business and leave you without profit until you can afford to get another one up and running.
So, the cost you would have to pay outright for any broken or stolen machinery, would far exceed the amount you’d pay for insurance.
Overall, building machinery insurance could help prevent any real losses if your expensive equipment was to break down. It would also provide you with the funds required to replace machinery that has been damaged for any reason. So, if you haven’t yet invested in this type of insurance, now is definitely the time to consider doing so.