Insuring your Equipment
Running a small business comes with risks and unfortunately, accidents can happen that could impact your business in a negative way. One step to protect your business is to purchase property/equipment insurance. Here are a few things to know about equipment insurance.
1. Equipment insurance is a sound risk management strategy.
You’ve invested a lot of money into your equipment and your business depends on your equipment to run properly. If something were to go wrong, asset insurance passes the risk of loss or damage to the insurance company. If the equipment is damaged or lost, paying for it with your own money can be a big hit for the company to take. An insurance policy is a contract between a business or an individual and the insurance company. The business will make regular premiums based on the risk, equipment cost, and the term of the coverage—And in return, the insurance company agrees to pay out the amount of money in the event that certain named assets are accidentally damaged, destroyed, stolen.
2. It is required within financing
If you lease or finance equipment for your business, insurance coverage is required by your agreement, and it’s a smart move for your business, too. Financing your equipment comes with many benefits and will help you grow your business and help you stay competitive within your market. All financed equipment must be covered by insurance and for good reason. Most lenders will make a requirement to have insurance as part of the agreement. They want to know that the assets are safe. They will also need you to include them as an additional insured and loss payee under your policy as well.
3. What kind of insurance do I need to cover my equipment?
In most cases, the “SPECIAL RISK” policy will be the way to go. This plan is a complete insurance program that covers loss or damage to equipment by theft, accident, vandalism, fire, flood, tornado, and other natural calamities. “Special Risk” means there are very few exclusions to your coverage, but always speak with your insurance agent with any questions regarding your policy and all that it covers and know your benefits.
We have unsurpassed response times and our clients notice how simple & efficient a financing activity can be working with us. Acquiring new equipment isn’t always the easiest, but working with Brickhouse capital—we will keep your goals in mind. With over 18 years of experience and our supportive customer service we can help you with your equipment needs to grow your business. Start the conversation today