From growing your bakery brand and keeping up with customer demand to complying with health and safety standards, as a bakery owner you face a variety of unique challenges.
Along with the daily challenges and adventures of running a bakery, there are a variety of risks that also require your attention. Many of these risks can be addressed with an insurance policy that is designed specifically for bakeries. Equipment breakdown insurance is one essential coverage that you should have.
Why You Need This Coverage
Commercial property insurance covers damages caused by external forces, such as fire, lightning, wind, hurricane, etc. However, a standard commercial policy excludes coverage for damages that equipment breakdown insurance is designed to cover – damages from internal forces such as mechanical or electrical breakdowns. Even with strict safety protocols, unforeseen events can occur leading to an equipment breakdown and resulting in costly physical and financial damage. If an equipment breakdown occurs, this coverage protects your business from the financial impact of repairs, replacements, and lost revenue.
Equipment Breakdown Insurance
A power surge or mechanical failure can slow down production and possibly lead you to close your shop while repairs are being made. You can protect your business from costly repairs and lost revenue with equipment breakdown insurance. This coverage is for damages caused by internal forces, such as:
- Power surges
- Electrical arcing
- Electrical shorts
- Artificially-generated electrical currents
- Mechanical breakdowns
- Motor burnout
- Bulging, cracking, or collapse of pressure vessels
- Centrifugal force
- Operator error
What is Covered by Equipment Breakdown Insurance
Equipment breakdown insurance covers the cost of repairing or replacing equipment due to an unexpected breakdown. It also provides compensation for lost income during halted production. Equipment that is generally included under this coverage can include the following:
- Industrial mixers and ovens
- Refrigerators and freezers
- HVAC systems
- Generators
- Business equipment
- Computers and telecommunications
- Security systems
- Electrical equipment
- Retail “point-of-sale” systems
Mitigating Risk
Along with having the right insurance coverage in place, implementing preventative measures is also important to keep equipment functioning smoothly.
- Follow a regular cleaning schedule.
- Regularly inspect and maintain all machinery and equipment.
- Keep spare parts on hand.
- Follow manufacturer usage instructions.
- Make sure wiring is up to date and at sufficient capacity for your equipment.
Don’t let a gap in coverage leave your business at risk. Protect your finances and the longevity of your bakery with equipment breakdown insurance. Contact us today to discuss this important coverage.
