Machinery And Equipment Insurance: What You Need To Know

Business owners need to protect their investment, which includes any machinery they use. This is why it’s wise to buy equipment insurance. You might have questions about machinery and equipment insurance. Read on to learn more about what equipment insurance is, machinery it covers, what a policy covers and other useful information.


What Is Equipment Insurance

It is insurance that covers equipment that a business owns and uses in their operations. Machinery and equipment insurance is often referred to M&E insurance or M&E coverage. It is also called breakdown coverage.

Businesses of all kinds can purchase machinery and equipment insurance. This includes everything from nursing homes to restaurants, retail shops, service-based businesses and many others. It doesn’t matter what type of business you run, the chances are you can benefit from having M&E coverage.



This type of insurance is similar to other forms of insurance when it comes to policies. The type of policy businesses can get depend on several factors such as the nature of their business, what they want to cover and who they decide to buy their policy from. Generally speaking, there are standard policies and there are more extensive policies that cover more stuff than standard coverage.


Types Of Machinery That Can Be Covered

Various types of machinery and equipment can be covered under M&E. This includes emergency generators, refrigerators and refrigerator units, boilers, air conditioning units, and heavy duty equipment used by businesses such as warehouses, factories and so forth. What can be covered depends on the type of policy the business owner purchases.


How Does Equipment Insurance Work

The way it works is simple, as M&E reimburses you for what you spend on replacing or repairing equipment that is covered under your policy. If the equipment was damaged or malfunctioned due to an accident, then it might be covered. If equipment breakdown through no fault of your own, then you might be able to claim it on your insurance. However, accidents are not considered to losses or deterioration as a result of normal use because this is expected to happen as time goes by.



Like other types of insurance, there is typically a deductible. Before you can claim on your machinery and equipment insurance, you might have to pay the deductible. If your policy isn’t paid in full at the time you purchase it, then you’ll make payments until it is paid in full. How much your deductible is and how much coverage you’ll have depends on who you do business with and the type of policy you purchase.


Tips For Choosing Equipment Insurance

  1. First, choose a reputable insurance provider. Not all providers are created equal, so find one that has a good reputation. You don’t want to buy coverage from a company that is known for giving people issues when they try to file a claim on their machinery and equipment insurance policy.
  2. Second, decide what equipment you want to have covered. This will play a major role in how much coverage you should purchase and how much your policy will cost. Think about the equipment that is of the utmost importance to your business and how often you use the equipment. You’ll want to make sure your policy will cover that equipment.
  3. Finally, read the terms and conditions carefully before you make your choice. You want to find out what exactly is covered, how much your deductible will be and know exactly what you’re in for. Nobody wants to be left shocked when they try to file a claim, which is why it’s important to read the terms of the policy you’re thinking of getting.

Here’s a bonus tip, choose a provider that is known for their customer service. You don’t want to be waiting for long periods of time to hear back from them. This is especially true when you’re trying to file a claim.


Benefits Of Equipment Insurance

When it comes to M&E insurance, there are several benefits. This is regardless of the type of business you run. The key benefits are:

  • Equipment Covered- One of the best things about machinery and equipment insurance is the types of equipment that can be covered. This includes mechanical equipment such as elevators, motors and manufacturing equipment to name a few. Electrical equipment, computers and communications equipment might be covered too. Other types of equipment include AC units, refrigeration systems and boilers to name a few.
  • Save Money- Another major benefit of equipment insurance is potentially saving money over time. If a piece of equipment fails due to an accident and it isn’t covered by a warranty, then this means you’ll be responsible for repairs or replacing it. This can be very expensive, but you could save money by purchasing machinery and equipment insurance. For example, coverage might include replacements and/or repairs, and you’ll only be responsible for the deductible, which often works out to be far cheaper than paying for a new machine in full or to have it repaired.
  • .Peace Of Mind- Above all else, you receive peace of mind when you have adequate insurance for your machinery and equipment. It doesn’t matter the business, the chances are machinery and/or equipment is used on a day-to-day basis. The last thing you want is for essential equipment to fail, as this can disrupt your entire operations. An extensive policy means minimum disruptions in the event something goes wrong with your equipment.

Those are only a handful of the many potential benefits of machinery and equipment insurance. However, the best thing about the insurance is you won’t have to spend out lots of cash to have your equipment fixed or replaced. Best of all, your insurance provider will handle the majority of legwork involved. All you need to do is follow the instructions for filing a claim, and they will take care of the rest.

The bottom line is businesses that own machinery should look into equipment insurance. When it comes to machinery and equipment insurance, it’s important to keep the previously discussed tips in mind. That is how business owners will find the right insurance policy for their equipment.

Leave a Reply

Your email address will not be published. Required fields are marked *

19 + 6 =