In the manufacturing industry, one of the most important aspects of obtaining Philadelphia Manufacturing Insurance is being covered for equipment breakdown. Not only can equipment breakdown be costly and inconvenient to repair, it can also cause a severe business interruption, ultimately hurting your company’s bottom line. In addition to being insured, it’s important to know what causes equipment breakdown, and what is typically covered.
When you think of equipment breakdown, your mind typically goes to mechanical equipment, such as motors, engines, generators, elevators, etc. Wear and tear of mechanical equipment is expected, and you may be fairly well prepared when it breaks down from metal fatigue, vibration, or misalignment. This is a covered loss with your Philadelphia manufacturing insurance, but not the only equipment breakdown you should be concerned about.
A couple more common causes of equipment breakdown are electrical failures and issues with computers or communications equipment. Electrical equipment that could short out and cause a power outage or even a fire might include transformers, electrical panels, and cables. Computer and communication systems include physical computers, phone systems, and security and fire alarm systems. Anything from a power surge to an electrical fluctuation could cause a costly business interruption.
Depending on what type of manufacturing plant you own or run, you may have a couple more factors that could contribute to equipment breakdown and/or a business interruption; refrigeration system failure and boilers and pressure equipment breakdown. A lack of heat or hot water can easily close the doors of any business, especially a manufacturing plant that relies on this factor.
As you can see, the Equipment Breakdown factor of your Philadelphia Manufacturing Insurance Policy is vital to the ongoing operations of your manufacturing plant. At Tri-State Insurance Agency, we provide customized manufacturing insurance solutions, including those in the fields of electronics, food, industrial equipment, metal/machines shops, and packing, among others. Please contact us today at (888) 990-0526 to learn more.