How Manufacturers Insurance Covers Equipment Downtime

Manufacturing companies are typically subject to strict timelines, requiring predictable and reliable operations to meet deadlines and keep up with orders. These inherent responsibilities and expectations make issues involving businesses’ equipment and machinery particularly problematic; even slight malfunctions or accidents could incur extensive financial consequences. Fortunately, the right combination of insurance can help retain financial security.

How Does Manufacturers Insurance Work?

Although a common term, manufacturers insurance does not typically refer to a specific product available from all carriers. Instead, manufacturers insurance might refer to the combination of policies and coverages in which your business invests that, when woven together, form a versatile financial safety net. Certain key components in your manufacturers insurance package can specifically address losses arising from equipment issues and subsequent downtime.

What Types of Insurance Does My Business Need?

When thinking about ways to insure your business against equipment downtime, you should expect to need a multifaceted approach. Specifically, you’ll likely want to invest in the following types of policies:

• Business interruption insurance—This type of coverage is often available as a standalone policy, as a component of a business owners policy or as a commercial property insurance endorsement. Regardless of how you get coverage, doing so can be critical, as various incidents that might damage your equipment, such as fires and vandalism, can be covered. If equipment issues cost you anticipated revenue, your coverage can help recoup such losses.

• Equipment breakdown insurance—Some business interruption insurance may be limited to covering losses arising from external threats. This means that you might require equipment breakdown insurance to address situations in which your machinery breaks down due to malfunctions or defects. Fortunately, an equipment breakdown insurance policy can often include coverage for such circumstances.

• Cyber liability insurance—Depending on the type of equipment your company uses, you might also need cyber liability insurance. These policies focus on responding to financial repercussions after cyber incidents and data breaches. For example, if your computer systems are hacked and you must shut down networks, your insurance may help cover lost income.

We’re Here to Help

At Pitcher Insurance Agency, Inc. we can help manufacturers in Palatine, IL assemble an insurance package capable of addressing equipment issues and subsequent downtime. Contact us today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.