What is covered?
Business equipment insurance is a collection of covers designed to offer the best protection for your equipment against:
- Loss
- Accidental damage
- Theft
- Fire
- Flood
- Vandalism
- Damage to hired plant or machinery
Equipment insurance falls into two broad categories. It can be taken out by office-based companies that need cover for their devices and tech, and it can also be tailored to suit the construction, manufacturing, and engineering sectors. It covers equipment such as cement mixers, cherry pickers, diggers, dumpers, dozers, excavators, forklifts, loading shovels, milling machines, site huts, and trailers, along with industry-specific heavy plant and machinery used for manufacture and production lines.
If you’re hiring in or hiring out plant and equipment, an insurance policy can be tailored to protect the items in each scenario.
What’s the difference between tool insurance and business equipment insurance?
Tradespeople take out tool cover to provide financial protection for the tools of their trade, from saws, hammers, spanners, and chisels to more bespoke and high-tech pieces of kit. Tool insurance tends to cover handheld equipment, but other portable equipment may also be covered.
Generally, business equipment insurance relating to trade covers larger equipment (the type that stays on the premises or sits on-site overnight), but tools can also be added to this type of policy.
Frequently asked questions
Does home insurance cover business equipment?
If you run your business from home, it’s essential to know that your business equipment may not be covered. Because it is being used commercially, it isn’t considered the same as other home contents.
Are items left in work vehicles covered?
Understanding the nature of the equipment insurance policy you’ve taken out is vital. If you took out a policy for equipment in the confines of your business premises, the equipment may not be covered once it leaves these premises. If you want coverage for equipment travelling in a work van or on the back of a trailer, you’ll need all risks cover.
Is business equipment cover the same as business interruption cover?
No. Equipment insurance will only deal with the costs associated with repairing or replacing a lost, damaged, or stolen piece of equipment. It will not pay out for any loss of earnings attributable to the equipment issue. You will need to take out business interruption cover to deal with any financial shortfalls that occur.
Can I insure business items kept at home?
Yes. As long as you stipulate that your business is run from home or that you store certain business equipment at home, you will be able to receive coverage from a business equipment policy in most instances. Remember, a secure storage location with enhanced security measures will help to reduce your premium.
At Park Insurance, we’ve been protecting the business equipment of British small businesses for over three decades. With our in-depth industry knowledge across a variety of sectors, we can help you calculate your sums insured for the perfect level of cover. Get in touch with our friendly team today to see how we can protect your business equipment.