Though people are the forerunners of businesses, property, vehicles, tools and gadgets also play an integral role in business function. No matter the size, your business thrives on its equipment and without it your business would suffer significantly. Whether you use huge-powered machinery to drive your business forward or the latest technological advances in computers, you really can’t afford to not be insured.
Whether by loss or damage, without proper insurance, your business would start to lose money, and may even fail. That’s why we’ve put together this guide to insuring business equipment.
What insurance is needed?
There are 13 reasons to take out the right business insurance, according to Forbes, and this includes liability insurance, insurance to protect your workers and company directors, as well as insurance to protect your buildings; insurance for equipment is one component that is often overlooked. Insurance for equipment is a vital part of making sure you’ve got all areas covered and is designed to cover tools and other materials vital to your business operations.
Business contents insurance should cover theft or loss of equipment from your business premises, and protection to cover any tools or equipment which are lost or stolen while off-site can often be added to a public liability insurance policy.
Who needs insurance and why?
Without insurance you could be putting yourself and your business at unnecessary risk. The cost of new equipment can be prohibitive if you choose to replace lost or stolen goods out of your own pocket. One young entrepreneur, Tim Gestels, estimates lost or stolen tools represent a €1 billion market and has devised a way of tracking them.
Protection for physical assets such as tools, equipment, vehicles and properties should be taken alongside policies which safeguard intellectual assets and commercial interests.
This means looking at liability insurance which protects SMEs against legal complaints and compensation claims. Public liability covers claims brought against a business by clients or members of the public.
Vehicle insurance is another must for anyone using a van or car for their business which may not fall under the business equipment insurance add-on so make sure to read through your policy thoroughly.
What options are there for equipment insurance?
Equipment insurance is often provided as an add-on to a public liability insurance policy.
The right equipment insurance should guard against things like breakdown cover, fire, theft, vandalism and accidents. Make sure you’re prepared for any worst-case scenarios including cost of repair or replacement, and labor and time lost due to being without essential equipment.
You should hold an accurate inventory of your tools and equipment and ensure that your insurance policies provide enough cover to replace them. Read through documents carefully and make sure not to underestimate the value of the equipment. Consider where tools are kept – both during the day and overnight – and what security features are used to ensure you do not breach any clauses on your policy.
Having the proper coverage for equipment should ensure your business will stay up and running no matter what situation occurs. The peace of mind in knowing that your essential equipment is safe is well worth any costs in ensuring that your business weathers any storm. Take a look online to find the best providers; there may be special deals and rates with add-ons that you haven’t considered.