When you start a business, you may think of various ways to protect it. After all, it took you months or even years to come up with the business plan and execute it properly. Even though you protect your business with different business insurance policies, what about the machines that make your company successful?

They are the real reason that your business thrives in the industry. They also deserve protection from accidents and physical damages, and so, you should consider buying machinery insurance as soon as possible.

Understanding machine insurance

Almost everything in this world comes with an expiry date and the machines in your company are no exceptions. They would eventually wear down and require replacement. That doesn’t mean you need to replace them as soon as they break down. In most cases, repairing the machine can ensure that it lasts for many more years. But the cost to repair the machine may be too high. You are left with no choice but to dig into your business’s profits to repair the machine. Fortunately, machinery insurance can prevent this sudden expense.

The advantage of machinery insurance is that it provides instant money to repair the machine. Of course, you need to take a look at the terms and conditions of the policy because a few companies ask you to spend the amount first and they would reimburse it to your account later. But you get the peace of mind of not having to spend from your pocket on the repairs. From physical damage of the machinery to accidental breakdown, the policy may cover the repair or replacement cost depending on its terms and conditions.

Claims process

The claims process is usually different for different companies. You should always clear your doubts with the respective insurance company before buying one of the machinery insurance policies. Here are a few steps that you may need to follow to claim your deserved amount:

● You should immediately notify the insurance company about the machine’s breakdown. Some companies require customers to send the notification via email or in writing. Follow the instructions to ensure that the insurance company cannot delay the claims process later.

● Make sure you provide as many details as possible about the breakdown. Specify the nature of the damage and the extent of loss you may have to bear until the machine is repaired.

● Talk to an expert about the cost of repairing the machine. He would inspect the different parts and decide whether any of them requires replacement or not. Don’t discard the parts that he wants to replace. The insurance company may send a technician later to check the condition of the parts before providing the compensation.

● Fill out all the documents that the insurance company provides for the claims process. Go through each and every question carefully. Don’t hesitate to ask an expert if you are not sure about the answer to a question. Filling out wrong information may lead to the insurance company not accepting your claim. You will also have to submit your company and machine details. Keep a few details handy, such as the machine’s date of manufacturing, registration date, warranty period, and whether it is the first time you are repairing it.

Types of machinery insurance policies

There are primarily three types of machinery insurance policies that you should know about: CPM insurance policy, BM insurance policy, and Equipment breakdown insurance policy.

1. CPM insurance policy

CPM insurance or Contractors Plant and Machinery Insurance offers coverage to the machines you use for a specific worksite. As the name suggests, this insurance policy is suitable for business owners of construction companies. Physical damage or sudden breakdown of one of the machines like a concrete mixer and drum or asphalt mixer may stop your construction work. The repair cost may be quite high if the technician has to replace multiple parts. Therefore, consider buying CPM insurance if you don’t want to spend the money from your pocket.

This type of insurance policy offers coverage against any kind of damage to the insured machines. In fact, it even covers the damage caused due to natural disasters, burglary, riots, or accidental damage.

2. BM insurance policy

BM insurance or Boiler and Machinery Insurance offers reimbursements for the losses you had to incur while repairing the damaged machine. It usually covers a wide range of machines, such as furnaces, boilers, office equipment, and even elevators. When you consider buying machinery insurance, you usually think of the heavy-duty machines that you have in your factory. You don’t think about the computers, printers, copy machines, or the elevators. But they are also machines that contribute to your business’s growth. A BM insurance policy covers all these machines so that you don’t have to pay for repairs every now and then.

Here are a few heads that a BM insurance policy covers:

● Electrical issues, including problems with cables, electrical failure, power surges, and short circuits.
● Technological problems, like phones, computers, security systems, and alarm systems.
● Air control units, such as air conditioning systems, heaters, and boiler equipment.
● Boilers, like valves and pressure gauges.

3. Equipment breakdown insurance policy

This policy covers the losses that your business bears in case of accidental or sudden damage to a machine, either by internal or external causes. Excessive speed, lack of lubrication, loosening of the parts, structural defects, or short circuits may contribute to the machine’s damage. You may submit your claim right after you determine the extent of the damage to get your reimbursement. Here are a few losses that the policy usually covers:

● Machinery breakdown because of excess voltage, defective casting, mechanical breakdowns, or short circuits.
● Compressors, turbines, or hydraulic cylinders that burst due to internal pressure or centrifugal force.
● Physical breakdown after a fire starts from the machine.

Machinery insurance is essential, especially if your office or factory has heavy-duty machines operating for long hours. You never know when they may break down. Instead of contemplating the consequences, start protecting your machines by purchasing machinery insurance.