Safeguard Your Business with Equipment Breakdown Coverage for Machine Shops


Your shop may contain metal lathes, milling machines, drill presses, grinding machines, and much more. It’s called a "machine shop,” so when the machines break down, you know it’s not good news! Do you have insurance coverage for equipment breakdowns for machine shops? If not, why not? Equipment breakdowns can seriously impact your business. Work comes to a stop, and then you have to make a choice: you can call in a repair person; you can rent a replacement machine, or you can replace the equipment with a new machine. All of these options require time, and a significant outlay of cash. In addition, your clients will be inconvenienced, the delay will be costly, and your shop’s reputation may even be damaged. At least if you have equipment breakdown coverage, you will be able to recoup some of your expenditures and income loss. But oddly enough, many machine shops do not carry this type of insurance.


Assessing Your Policy


How did you choose your insurance policy? Does it contain all of the types of coverage that you need? Are you paying for coverage that you will never use? You’d be surprised how many commercial enterprises have insurance policies that don’t really align with the activities and problems that are specific to their operations. It comes as a true shock to the system when business owners try to file a claim, only to find out their insurance is inadequate.


Equipment breakdown is just one area of coverage that may not be sufficient. Do you have coverage for damage done to property that’s rented to you? For products that cause injury to clients? Often shop owners purchase insurance when starting out that doesn’t grow with the business, or was never sufficient in the first place. Don’t wait until something happens to find out that your coverage is not all it should be. Gain peace of mind – ensure your shop’s insurance gives you full coverage.


What a Broker Can Do


It’s hard for a layman to know exactly what is necessary to fully protect his/her business. That’s why working with a broker can be the best move you’ll ever make. Insurance brokers assess your shop thoroughly, make recommendations, and connect you with an insurance company to create a customized commercial insurance policy.


Finding the right broker is key to the whole process. Research insurance brokerage companies and look for ones that have years of experience and a good reputation. Look at which insurance companies the brokerage firms partner with. Go with a broker who places a high value on the broker/client relationship. The insurance broker will come in to learn as much as he/she can about your operation in order to learn about areas of coverage that may be necessary. Next, a safety specialist will come in to do a comprehensive risk analysis, by observing work at the shop. He/she will be able to pinpoint ways in which your business can avoid or reduce its exposure to risk. Implementing policies to accomplish this will make you a better insurance risk. After the assessment has been made, the broker will connect you with an insurance company who can meet your needs.


Contact an insurance brokerage firm today, and learn more about customizing your machine shop coverage to cover you for equipment breakdown This type of coverage is more valuable then you could imagine and may save your company if the unforeseen happens.

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Commitment to our clients is to provide:

  • Right insurance program.
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  • Recommend practical loss prevention measures.
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