Insurance Options When You Want to Upgrade Your Business Machines

Businesses with the latest equipment can often improve their efficiency, resulting in a more competitive and profitable business. However, your machines face several risks, and you should consider contingency measures to prevent any loss of your investments.

Insurance helps you avoid any inconveniences that may occur after you upgrade your business equipment. Your new machines may have cost a lot of money, and their losses could bankrupt or ruin your business’ strategies. Insurance also gives you the confidence to take business risks without fear of loss.

Read on to learn about several insurance options available for when you upgrade your machinery. 

Breakdown Insurance

A machinery breakdown insurance policy is one of the most important covers for your small business. This cover helps you pay for repairing machinery at work when they break down accidentally, or for routine maintenance. Breakdown insurance only applies to machines whose warranty periods have already expired. 

This insurance cover is appropriate for different industries and machines. For example, you can obtain breakdown insurance for commercial vehicles the same way you get cover for your forklifts or bending machines. Some major industries in which this insurance coverage may be essential, are health facilities, manufacturers, production plants, financial institutions and real estate businesses. 

Fire Insurance

Machines are often at risk of damage caused by fires. Fires come from a wide variety of accidents and natural causes. Fire insurance exclusively applies to damages caused by flames, including bushfires. Your business may have fire-retarding mechanisms, but natural factors such as heat waves may also cause fires. 

Some machines are more likely to cause a fire than others. For example, damaged instruments cause short circuits that lead to sparks and fires. In addition, devices that use combustible fuels such as petrol or propane may also be at a higher risk of developing fire on your premises. 

Sabotage and terrorism

Insurers have unique covers that protect your business from sabotage, physical damages, strikes, civil commotion and riots. These insurance covers extend to the interruptions caused by such problems. For example, your business may quickly lose clients when its core machinery and equipment do not function to the fullest.

Another major issue that can damage your business’ machinery and equipment is terrorism. For example, cyberterrorism can cause catastrophic failure of systems that rely on networks vulnerable to hacking. You should consider this type of insurance to prevent losses from terrorism, whether your business is the direct or indirect target of such attacks. 

Theft

Finally, your new machines and equipment may have required a huge investment, so it makes sense to protect them against theft. You may also wish to insure portable items under ‘General Property’ so that theft is covered away from the business premises.

Business insurance helps protect your business against numerous risks that it may face. Once you upgrade your machinery, ensure you adequately protect these valuable assets and the rest of your business. At Westralian Insurance, we can help you explore different insurance options. We will also assist with any claims you may need to make in the future.