If you are unable to complete orders before the stipulated time, you may need to pay a heavy penalty to the clients. So, to be on the safer side, you need to get rid of such risk factors, especially when you are operating a small business.
All the renowned and big businesses got strong financial backup, which small businesses lack. So, all you need to purchase is plant and equipment insurance. Let us see how worthy is manufacturing plant and equipment insurance for your business.
What Is Plant And Equipment Insurance?
Your plant and equipment may get damaged because of collision, water, fire, falls, overturning, theft, storm, or any other malicious damage. And the plant and equipment insurance cover such damages.
Although, these kinds of insurances may not cover the internal damages of the machinery unless they are caused by an accident that is covered in the plant and equipment insurance policy.
For instance, if a heavy truck loses track because of a damaged or defective brake system, the insurance company will pay the cost for the crash damage. But, the repairs for the defective brake system will not be paid.
However, if the brake system is damaged and there is no consequential loss, the policy will cover nothing.
If you are a small business owner looking for the correct plant and insurance policies, you may look at https://fastmachineryinsurance.com.au/plant-and-equipment-insurance.
Features Of The Plant And Equipment Insurance
The SA or Sum Assured will be equal to the damaged item’s replacement with a new one. The replacement will be done with the same quantity and quality of the damaged item.
Procurement costs are included in the replacement costs, and it also includes the freight charges and customs charges.
Some of the factors that influence the plant and equipment insurance premium are as follows:
• Equipment type
• Model and make of equipment
• Equipment’s purpose
• Usage frequency
• Location
• Project type
Risk Factors Involved In The Equipment Usage
Also, the plant and equipment insurance will be able to extend the benefits of the insurance policy by availing of multiple add-ons. Some of the popular add-ons for manufacturing factory insurance policies are:
• Escalation risk
• Landslides and earthquake
• Customs duty
• Elimination and clearance of debris
• Terrorism act
• Express shipment charges
• The property that surrounds the business owner
The proposal form of the insurance policy will consist of the list of machines, equipment, and devices that the policy must cover.
Small business owners can buy a single policy covering several types of risks associated with the equipment. And the proposal form must contain the equipment's cost.
The insurance company will decide the excess based on the Sum Assured of the machine, its type, and others.
If you think that the standard coverage of your existing policy is failing to meet your requirements, you can also purchase additional coverage.
Benefits Of Plant And Equipment Insurance Policy
The plant and equipment machinery protect both your revenues and assets. The projects can be secured for enhancing the profits. And this particular kind of insurance protects the machines in the best possible way.
Some of the popular benefits of the plant and equipment insurance policy for small business owners are discussed below:
It covers construction equipment like cranes, excavators, bulldozers, forklift trucks, pile-driving machines, compressors, drilling machinery, and a lot of other heavy machinery.
The accidental loss that takes place at the premises of the construction will also be covered.
During both running conditions and idle conditions, mobile machinery is covered under this policy.
This insurance policy is also applicable while cleaning, re-erection, and overhauling the plant and machines.
The small business owner can also buy the add-on cover for receiving extensive coverage for machinery or factories against several types of perils like terrorism, 3rd party liability, and earthquake.
The plant and equipment machinery reduces the machinery’s downtime for the small businesses and helps them to improve their operational cost.
How To Make A Claim
The damage that has taken place to the plant or equipment that is insured must be informed to the insurance company as early as possible. The policyholder must follow the regulations and rules that the insurance company has stipulated.
The intimation or information regarding the damage must be made to the insurance company within two weeks from the day of the event.
And if the business owner fails to inform the insurance company about the event within 14 days, the insurance company will not be liable for any kind of damage.
The following actions need to be taken for making a claim:
A correct format must be followed while sharing the information regarding the loss or breakdown to the company.
The surveyor selected by the company must be assisted by the business owner.
The claim form needs to be submitted along with the necessary supporting documents.
It is necessary to document and present the financial loss suffered by the business owner caused by the breakdown or damage of the plant or equipment.
Conclusion
The competition is high and being a small business owner it is really difficult to survive in a place where large companies are taking over the market. So, it is always better to keep your plants and equipment insured with the correct policy.
It keeps you away from risk and gives you mental satisfaction. But, perform research before choosing a policyholder, and go through the terms and conditions carefully and ask questions to the insurance company whenever you are in doubt.
