Insurance is a big area of concern for any business that uses machinery. Not only do machines increase the risk of injury but they can develop faults, bringing your business to a grinding stop. Taking out the right kind of insurance will save you a lot of problems, so here’s a rundown of the most important types.
#1 General liability
Perhaps the most common type of business insurance in the world, general liability covers you against a range of potential problems. If somebody (a member of staff or a customer) sustains an injury because of your machinery, they might claim. General liability covers the cost of the claim and any other legal expenses incurred. Its remit is wide, even protecting you against claims made for property damage. Liability is often considered a foundational type of insurance. It’s the first cover that most companies take out. Not only does it bring peace of mind, but it’s a legal obligation in some areas.
#2 Plant and machinery
More specific than general liability, plant and machinery cover is designed to protect your equipment and workspace. There are many different types available (depending on whether you rent or own your machines) but the scope of the cover remains the same. It protects your machinery in case of malfunction or damage and covers your business if somebody has an accident caused by the machines. Plant and machinery cover is absolutely vital for any company that uses machinery and will save you a lot of money if something goes wrong. Policies are often bespoke, so it’s important to run a detailed audit of exactly what your business requires.
#3 Mechanical breakdown cover
Mechanical breakdown cover is an additional layer of specialized cover that pays out if a machine malfunctions. It applies to any kind of machine, from printing and conveyer belts to more specialized equipment like the balers found at recyclingbalers.com. A breakdown can be catastrophic for a business and even stop it from operating altogether. Mechanical breakdown cover is about more than just payouts. Insurers will often promise to replace your equipment or at the very least send out specialist repair teams to get it back up and running. It also covers you against other losses associated with the breakdown, including paying staff overtime, the loss of stock, emergency expenses and even loss of revenue. Mechanical breakdown cover is wide ranging and it’s a prerequisite for any business that relies heavily on machinery.
#4 Business interruption
Although, one of the more generalized types of cover, business interruption is nonetheless vital. It covers you if you can no longer do business due to an unexpected event. That might be something natural like a flood or fire, or because something has gone wrong with your machines. Crucially, this insurance pays out to put you in the same position as you were before the event happened. That makes a big difference, especially to businesses that operate on finer budgetary margins. It offers peace of mind, too, and ensures that you’ll never lose money because of circumstances beyond your control.
