Do you have equipment breakdown coverage for your metal fabrication firm? It’s an area that’s not always covered by insurance policies, yet it can be vitally important for you. If your equipment goes down, work can grind to a halt. And if the work stoppage lasts too long, it can have serious consequences. Your clients are waiting, your employees are idle, your income can be impacted, and your company’s reputation can suffer.

Obviously, when an equipment breakdown happens, you’ll do everything you can to get back up and running. Sometimes this means paying out a lot of money for emergency repairs or renting equipment. Occasionally it means replacing equipment altogether. However, when you have equipment breakdown coverage, you can recoup some of the associated costs. Coverage for loss due to mechanical or electrical breakdown usually applies to the cost to repair or replace the equipment. Often, resulting business income loss is also covered.

Equipment breakdown coverage is just one of the areas that metal fabricators, metal manufacturers, and metal workers need to consider when choosing insurance. Other areas may include:

• Commercial vehicle insurance,
• Theft insurance,
• Property insurance,
• General liability insurance.

Depending on the nature of your enterprise, there may be several other pertinent areas requiring insurance coverage.

Is Your Current Policy Protecting Your Business?

Many times business owners or contractors consider fairly standard commercial policies and select the company that offers the lowest premiums. These policies cover a wide range of scenarios for business, and offer reasonable protection for a variety of companies. But chances are your policy doesn’t truly reflect the activities of your metal fabrication firm. It could be that your insurance policy has "holes” in coverage, or it’s possible that you may be paying for insurance that you will never need. If you have added employees and have started to take on different types of work, it may be that your original policy hasn’t kept pace with the growth of your business.

Customizing Your Insurance

The best way to make sure that your livelihood and your employees are protected is to partner with an insurance broker who can help you to obtain customized coverage. A good broker will be familiar with metal fabrication in general, and will work to understand all of the aspects of your business. In addition, most brokers will also bring in a safety specialist to observe your workers in order to do a comprehensive risk analysis. He/she will make recommendations about areas where insurance coverage is indicated; he/she will also suggest strategies to help you maximize safety. Following solid safety protocols mandated by the Occupational Health and Safety Act, and avoiding risk whenever possible will make you eligible for lower insurance premiums, and could save you a significant amount of money over time. Next, your broker will find companies that can offer you a customized policy based on your specific needs.

Your insurance coverage should fit the needs of your business. Equipment breakdown coverage for your metal fabrication shop is just one of the many coverages you should have. Find a broker you can trust, and partner to ensure to get the best possible customized coverage.