Closing the Gaps: Equipment Breakdown and Business Interruption

May 4, 2022

Sometimes life happens while we’re in the process of doing business. There are so many things that are out of your control like equipment breaking down, fire, wind, lightning, and theft. We don’t think those things should interfere with your ability to do business. That’s why we offer equipment breakdown coverage and business interruption coverage!

Equipment breakdown coverage and business interruption coverage are both business insurance coverage enhancements we offer here at Pekin Insurance. Where a traditional business insurance policy may have exclusions for things like this, these coverages will literally “ENHANCE” your policy to provide better protection! That’s why we call them enhancements!

Equipment Breakdown Coverage

Equipment breakdown coverage is designed to help get your business back up and running when essential equipment breaks down.

It covers physical damage to equipment caused by mechanical and electrical breakdown like short circuits, electrical arcing, motor burnout, power surges, operator error, and more! Your warranties and extended service contracts aren’t always going to protect you from these larger, more costly losses. From heating and cooling systems to computers to refrigeration and so much more, this coverage is going to be essential in helping you get back up and running in a way that’s timely and financially feasible.

For example, you own a small landscaping company and the motor for your zero-turn riding mower burns out. These expensive riding mowers can cost upwards of $3,000, but don’t worry! Equipment breakdown coverage has your back.

Business Interruption Coverage

Business interruption coverage, also often referred to as business income coverage, helps replace revenue and cover extra expenses caused by perils like theft, fire, wind, or lightning.

Your traditional business insurance is there to protect your property and liability, but that leaves a gray area for lost revenue and additional expenses that pop up during a covered loss. That’s where business interruption comes in.

For example, you own a window/door company and a huge fire breaks out, leaving your space and inventory completely unusable. This forces you to close up shop for a few months while repairs are made and new inventory is brought in. Business interruption coverage will help recoup lost revenue and even allow you to continue operations in a temporary location, preventing your business operations from being interrupted at all.

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