Equipment Insurance in Alabama
Managers of companies of all sizes in Alabama – AL are increasingly relying on getting the proper levels of insurance cover for the equipment that is necessary to ensure the success of their operations.
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This has created a special need in the market for information about Equipment Insurance.
We hope this short article will give you the perception of what your best options are in Alabama.
The general kind of equipment can vary depending on what part of the economy your company operates in.
In this article, we will try to highlight the main features of how businesses have been ensuring that their investment in equipment is properly insured.
Why do you need equipment insurance in Alabama?
Tools and equipment are essential to daily running of your business activity. If they are stolen, lost or damaged, then all actions must come to a halt until they have been replaced.
So this is a double need. Insurance will help you to buy whatever you now need, and will quickly bring you back to normal operations and keep your customers happy and the profits flowing.
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Home service providers in Alabama
Many self-employed services in AL offer the complete range of repairs and replacements for domestic customers. A sample of these includes:
- Electrical work
- Solar panel installation
- General construction
- Roofing shingle repairs
- Fencing installation
- General handyman services
Some examples of the typical equipment insurance requirements for such businesses includes:
A carpenter will have need of powered hand tools like drills, saws, blowers, cutters, scaffolding, ladders and workbenches, and helmets and safety gear.
On the other hand, a glazer will typically need laser levels, dust-control systems, standing lights and hearing protection and goggles for welding.
A few special cases are, for example where the Alabama handyman license stipulates special insurance covers.
Tools and equipment for on-site work such as we wrote about above have some extra in Alabama because they don’t have the protection that you can provide when they are stored inside your own workshop.
They are exposed, subject to weather changes and the roving eyes of possible vandals and thieves.
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If you are spending your time watching over them, then you won’t get much work done, so having the safety of knowing that you have proper insurance will give you the chance to get on with the job.
Workshop equipment insurance
For larger businesses in Alabama, there is the necessity for both production and administration equipment. A few examples of these are:
- Electrical equipment like transformers and cables that control power to your other equipment
- Mobile mechanical equipment such as generators and pumps which are moved around between worksites
- Digital equipment such as communication systems that are essential for the administration of business
- Safety devices like emergency systems connected to the phone network
- Specialized manufacturing equipment used on a manufacturing line
- Control systems such as freezers to keep people and goods in the right temperature range.
For all of these you should be contemplating the relatively cheap cost of insurance, compared to the considerable losses that your business could sustain if something stops working.
As well as replacement costs and work lost, you may have to foot the bill for idle-time of your workers, who are standing around with nothing to do while the problem is being fixed.
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To cover you in this, give regard to how breakdown insurance can help you.
Equipment breakdown insurance in Alabama
Equipment breakdown insurance helps insure you in case of any stoppage or failure in your equipment. It will provide the following general payouts:
- spoilage of products that were stored in temperature-controlled areas
- Lost sales while the equipment is out of action or being repaired
- repair or replacement costs for any harmed equipment, including time and labor
- all ancillary expenses of the repairs, such as assessors, travel and accommodation for repairmen, etc.
Equipment rental businesses in Alabama
A special case in all we are discussing is a business that does nothing else but hire-out equipment. For this type of business, there are extra risks of damage, loss and theft.
For example, equipment has to be moved around extensively and sometimes stored in insecure and unsafe environments.
As well, for extended periods of time, the equipment is outside of your control so the levels of risk are much higher.
It may be subject to malicious damage, fire, theft or acts of nature like lightning strikes, hurricanes, earthquakes, and other highly damaging natural events.
All of these combine to make equipment insurance for equipment rental companies in AL a must-have protection.
What is the best form of equipment insurance in Alabama
Since almost all businesses has equipment of some kind, cover is usually included in a standard Commercial Insurance package.
Alternatively, several insurance companies in Alabama offer a specialized Business Owners Policy BOP that includes equipment insurance.
If you have any questions about insurance for small businesses in AL, you can usually find the answers on the internet, or by consulting with local brokers and agents.
Neither commercial insurance nor BOP provide coverage for wear-and-tear from usage, like corrosion and rust.
Larger operations such as building contractors need to give details of their more expensive and specialized equipment such as generators, concrete mixers, diggers etc.
Most insurance companies require specifications for any items that have a replacement cost of more than a few thousand dollars, the age of the equipment and its book value in your accounts.
Used equipment may not be covered at replacement cost. You should make sure what the terms and conditions of your policy are.
How much does equipment insurance cost in Alabama?
It is impossible to give exact numbers because there are so many differences between what kind of equipment is covered, the value, and the risks.
Here are a few guidelines:
- tools and equipment insurance in Alabama costs around $3 per month per thousand dollars of cover
- computer and office equipment with a value of $20,000 may cost around $20 per month, if you agree to a deductible of $250
- heavy equipment will cost something like $50 per month for $25,000 cover, but this excludes breakdown insurance
What is covered under electronic equipment insurance in Alabama?
In Alabama, it is possible to get cover for electronic equipment under a commercial insurance or BOP policy.
This will include printers, and hard drives. All companies also include mobile devices that are specifically designed.
Office equipment like photocopiers are also covered.