If the smooth running and profitability of your business rely upon equipment and machinery, business equipment insurance offers the ultimate peace of mind. If a critical piece of manufacturing plant breaks down or expensive equipment is stolen, your business operations could slow or even grind to a halt. With the right insurance cover, you can get back up and running quickly, minimising business interruption.
What is business equipment insurance?
Equipment insurance provides cover for damage or loss of the equipment used in the course of your business. Many businesses would find it hard to function without critical equipment, from a web designer’s laptop to a company’s heavy commercial machinery.
Whether your equipment stays on your premises, heads out with your workers, or is hired to customers across industries, equipment insurance is ready to reduce financial worries. You’ll be asked if you need cover for equipment that stays on your premises (ideal for offices and manufacturing plants) or whether you need all-risk cover for equipment that is taken out on the road to different locations.
Why is business equipment insurance important?
No matter how careful you are, your equipment faces various risks. Thieves can target businesses, especially those that operate with valuable equipment. Items can be misplaced, from a graphic design tablet left on the train to a vital piece of equipment that is lost when you move premises. What’s more, no matter how well you manage the working environment, accidents can happen, while natural disasters and fire can cause the total loss of your equipment portfolio.
The financial impact of replacing one or more items of essential equipment can put significant pressure on a business. Unless your company finances can shoulder such costs, it is wise to protect your assets with insurance.
For those companies that use large machinery and plant, heavy equipment insurance can be invaluable since the cost of repairs, let alone replacing the kit, can be extremely high. When heavy equipment is out of action, there can be a damaging knock-on effect, as other stages of production or construction cannot take place until the equipment is back in use. Delays can represent a significant financial burden for a business.
With a specialist insurer like Park Insurance, even if your business works with uncommon and hard-to-source equipment, we have the industry knowledge to ensure you have the right policy for your needs. This lets you minimise delays and return to business as usual as quickly as possible.
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.
How much does equipment insurance cost?
Because insurance is calculated on a business-by-business basis, premiums vary. Due to the difference in the sums insured, the annual cost of insuring a hairdresser’s equipment will be lower than that of a manufacturing plant.
You will need to accurately calculate the cost of replacing your business equipment since underinsuring could leave you financially vulnerable should a total loss occur, and overinsuring means you’ll needlessly pay too much for your premium.
To get your business equipment valuation right, keep all your purchase receipts and take photos of the condition of each insured piece.
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.