Though you’re the mastermind behind your business, you depend on various tools of the trade every day. Some companies depend on rows of computers to serve as high-tech command centers for their employees. Others take a more hands-on approach, complete with worksites full of appliances, art supplies or packing materials. Whatever industry you’re in, you undoubtedly depend on having the right equipment around you so you can fulfill contracts and check boxes off your to-do list.
You probably shudder to think what would happen to your bottom line if an accident damaged your equipment or rendered it temporarily unusable. How would you pay your bills for the foreseeable future, much less sustain your operations for the long haul?
Business insurance for equipment helps you create a backup plan to combat this uncertainty.
Your specialty equipment is expensive or irreplaceable
Starting a business, whether you’re a sole proprietor or in charge of a small workforce, is no easy feat. You should be proud of yourself! You should also protect your assets at every turn. Kabbage
points out some average start-up equipment costs by the industry that may surprise you:
You’ve accumulated your equipment over time, but accidents and natural disasters can knock your gear out of commission in the blink of an eye. Are you prepared to cut a check for the full amount of the losses so you can get back to work? Probably not, if you’re like most business owners.
One Forbes contributor sums it up well: “If you own your building or have business personal property, including office equipment, computers, inventory or tools, you should consider purchasing a policy that will protect you if you have a fire, vandalism, theft, smoke damage, etc.”
Your property insurance policy may use the replacement cost coverage method, which means the insurer will pay you the actual cost to replace your lost items. Or, your policy may use the actual cash value (ACV) method, which takes depreciation into account.
Getting back on your feet soon after an accident can make or break your business
Calls in the middle of the night are rarely a good thing. This time, it’s your partner informing you that an accidental fire heavily damaged your premises. Between the smoke, fire and water damage, your property is a mess! While you’re figuring out the logistics of cleaning up and repairing your premises, you may be able to salvage what you can and operate off-site to keep up an income stream.
But this best-case scenario hinges on having business interruption coverage that helps cover ongoing costs. According to the Insurance Information Institute, only 35 percent of small businesses do. With business interruption coverage as part of your Business Owners Policy, your insurer may pay the costs to relocate, to equip and operate replacement premises, to repair or replace your damaged property and to restore lost information records.
Along with your equipment, you keep clients’ property on your premises
Let’s say your business keeps clients’ property on your premises, as many businesses do—think laundromats, musical instrument repair shops and storage buildings, to name a few. What if someone breaks into your shop and steals several of your clients’ valuable possessions while they’re under your care?
Luckily, property insurance covers your building, your business personal property and personal property of others up to the limits of your policy. And if you keep electronic records containing clients’ personal and financial information, you may want to add cyber insurance to minimize the aftershock of an online data breach.
After a natural disaster or accident, something as simple as “business as usual” sounds like paradise. Business insurance for equipment can help your company bounce back. Take the first step today with CoverHound.