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.