Equipment Breakdown Insurance, sometimes referred to as machinery insurance or mechanical breakdown insurance, is an often overlooked but vital kind of coverage for bakeries, cafes, patisseries, pizzerias and more. In fact, any business that relies on the daily use of its equipment can seriously benefit from this kind of insurance.
What is Equipment Breakdown Insurance?
Equipment Breakdown Insurance is designed to cover the cost to repair or replace any equipment that breaks down. Depending on your insurer and your level of coverage it can also cover the costs of loss of income or trade, spoiled product, and expenses incurred during the restoration period.
Equipment breakdown insurance can make a huge difference to you and your business. That’s why the first question we ask when a customer needs emergency repairs or replacement equipment is ‘Do you have equipment breakdown insurance?’.
What Doesn’t It Cover?
It’s always important to double-check with your insurer exactly what is covered and what isn’t under your policy. Your business insurance can be made up of several different policies all with different inclusions and exclusions. Generally, equipment breakdown insurance won’t cover breakdowns due to things like general wear and tear, failure to perform normal maintenance, fire damage, storm or flood damage, or the costs of replacement for expendable or consumable parts.
Your commercial property insurance and other policies may still cover you where your equipment will need to be repaired or replaced due to events like storm damage or fire.
Why Do You Need Breakdown Insurance?
When equipment suddenly breaks down in your bakery the costs to repair or replace vital equipment can quickly build up. On top of that, you can lose large portions of your income to just one broken-down machine. While making insurance claims can be a stressful process at the best of times, this kind of insurance means you have the protection and ultimately the money to keep your business afloat when disaster strikes.
For example, say your retarder prover breaks down overnight, ruining the dough that was in it, and forcing you to close the next day. You call a technician who tells you they can repair it but they don’t have the right parts in stock and it will take 3 weeks for them to arrive. Rather than remaining closed for weeks, you hire another retarded prover so you can continue to trade until the parts arrive. Equipment breakdown insurance would cover the cost of the labour and parts for the repair. It could also cover the cost of the lost trade, pay to replace the spoiled dough, and even the cost of the rental equipment.
Australian Bakery Equipment Supplies Can Help
For over 30-years we have been dedicated to supporting Australian businesses. With our years of experience and a range of business support services, ABES is here for you and your business when you need us most. We offer short-term equipment rental and can liaise with insurers to help get you back up and running sooner.