Risk & Business Magazine Spectrum Insurance Magazine Fall 2018 | Page 6

EQUIPMENT BREAKDOWN INSURANCE
BY: TIM BIRKHAUSER,
INSURANCE ADVISOR, PARTNER,
SPECTRUM INSURANCE GROUP
B
Equipment
Breakdown Insurance
ecause your business depends on functioning equipment to operate and maintain revenue, a breakdown could be devastating. The
threat of breakdown is increasingly prevalent because technologically advanced equipment tends to be sensitive and fragile and
can easily sustain damage that causes breakdowns. Also, the losses sustained continue to increase with the rise of just-in-time
manufacturing, Internet marketing, and improved supply chain management. Problems with your equipment can be extremely
risky if you are not properly insured, as standard property insurance will not cover these types of losses. Equipment breakdown
insurance (also referred to as boiler and machinery insurance) will cover you in the event of damage or a breakdown.
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