Fire, storm, falls, water, overturning, collision, theft or any other event can damage your machines. Plant and equipment insurance covers these damages. However, make sure that you read all the documents to see what is covered and what is not. Internal machinery breakdown may not be covered in your plant and equipment insurance if it is not due to an external cause.
Benefits of Plant and Equipment Insurance
A contractor has to make a significant investment in plant and equipment. A contractor’s business relies on equipment. Therefore, serious damages to plant and equipment can lead to serious losses. There is an additional loss of working hours. The contractor should be quick at paying attention to these losses and get the business on track. Small and medium-sized companies have to bear the consequences of these damages if they have to pay attention to costs when there is no insurance coverage in place. These consequences include:
- They don’t have sufficient financial reserves.
- They have a limited number of machines and equipment. If one of the equipment is damaged, you may have to overuse your functional machinery. This can damage your functional machinery as well.
You can settle claims at reasonable prices and fast when you have proper insurance. Machinery breakdown insurance is different from plant and equipment insurance. Machinery breakdown insurance covers internal damage to equipment. The equipment can be stationary or mobile. The damage can occur due to machine frame, gears, bearings, or excessive load on engines. You need to consider the following before you consider machinery breakdown insurance:
- There is high wear and tear in harsh working conditions. This increases machinery breakdown claims likelihood.
- Machinery breakdown insurance premium rates are not sufficient to cover the maintenance costs of machines that are poorly serviced.
Depending on your requirements, plant and equipment insurance can be beneficial for you in the long run. However, get professional advice. Make sure that you get an insurer that offers first-class customer services.
Find an insurer who can offer technical expertise and also quality customer services. The insurer must ensure that he has financial resources to guarantee sufficient insurance capacity. A successful insurer is good at risk management, risk assessment of individual machines in the given settings, devising policies, evaluation and claim settlement, making precise loss analysis, and devising preventive measures.
It is important to invest time in loss analysis as it makes it easy and fast to examine and settle claims and reduces costs involved in claim settlement.
Reliable risk assessment is important to get suitable insurance cover. Depending on the risk, the insurer also suggests preventive measures.
In the end, go for an insurance company that possesses the technical expertise required to understand your business and provide you with a tailored solution. Every insurance company makes some promises. To make sure that it can actually deliver those promises, don’t forget to read online ratings and reviews about the insurance company. Also, see what its existing clients have to say about its services on its social media profiles.