For your small business, equipment insurance could keep you up and running when things break down.
There's a simple truth in running a small business: if your equipment isn't working, you're losing money. If you're a contractor and your tools are stolen, you can't work. If you run a small delivery company and a truck breaks down, you're out of work. If you own a bakery and your oven malfunctions, you'll have a hard time getting anything done.
Since your equipment is the lifeblood (at least to some extent) of your small business, equipment insurance is one way to minimize the pain of breakdowns, theft, and loss. Like every business, though, business insurance can take many forms. It's important to make sure the insurance you have is the insurance you need.
What does small business equipment insurance cover?
Pekin Insurance, and many other companies, offers policy enhancements to help make sure your business can get back in action as soon as possible following an equipment issue. One policy enhancement package covers contractors for owned and rental tools and equipment, as well as reimbursement for tool rentals. For retail business, you can add coverage to include your HVAC system, computers, and even the perishables in your restaurant's walk-in.
7 Tips to Guarantee You Have the Coverage You Need
1. Start with a BOP
A business owners policy, or BOP, is your first step in protecting your small business. A BOP usually includes liability and property insurance in a bundled package.
2. Determine your need
Your best option is to sit down with an experienced insurance agent and discuss your specific needs. However, there are a few things to consider:
- Do you have specialized or custom-made equipment that won't be easy to replace?
- Will you do all your work in one location, such as a retail shop, or are you a contractor who works in multiple locations?
- Do you have employees?
3. Determine when you need the coverage
You may qualify for a premium reduction on your commercial auto insurance, for instance, in the case of seasonal vehicle use. Just be sure to keep your vehicle off the road until you add it back to your insurance.
4. Revisit your policy
If your business gets an upgraded computer system or a brand new oven, you may need to revisit your policy to make sure you're properly covered. Your coverage for that $900 used deli case may not be what you need to cover your new, $7,000 case.
5. How fast do you need a replacement
Some equipment is hard to come by. Pekin Insurance's business equipment policies can offer coverage for expediting a replacement so you can get back to work faster.
6. Set up auto pay
You may have the right coverage, but if you fail to pay your insurance bill, your coverage could lapse. The easiest way to get around that is to set your business up with auto pay. Most insurance companies offer auto pay as an option, and it's a simple way to ensure your insurance coverage remains in place.
7. Keep good records
One of the great things about insurance is the peace of mind that comes with not having to worry the expense of business disasters. But to get the coverage you truly need, you have to keep good records. When you buy new equipment, make sure it's documented and added to your policy. In cases where you pay for a covered item out of pocket, you'll need receipts for reimbursement. And business income loss due to equipment breakdown is based on your previous income, so make sure you have records of everything.
Small business equipment insurance is just one way Pekin Insurance can help you take care of your business. Get in touch with your local Pekin Insurance agent today and find out about a customized business insurance plan to meet your needs.