Equipment Insurance in California
Managers of companies of all sizes in California – CA are increasingly depending on getting the proper levels of insurance cover for the equipment that is required to ensure the success of their operations.
This has created a special need in the market for information about Equipment Insurance.
We hope this short article will give you the information about what your best options are in California.
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The general sort of equipment can vary depending on what sector of the economy your company operates in.
In this article, we will try to point out the main features of how businesses have been ensuring that their investment in equipment is properly insured.
Why do you need equipment insurance in California?
Tools and equipment are essential to daily running of your business activity. If they are stolen, lost or damaged, then all activity must come to a halt until they have been replaced.
So this is a double need. Insurance will help you to replace 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 California
Many self-employed services in CA offer the complete spread 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 roof shingle repairer 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 plumber 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 California handyman license requires special insurance covers.
Tools and equipment for on-site work such as we wrote about above have some special in California because they don’t have the protection that you can provide when they are stored inside your own workshop.
They are in open space, 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 enough insurance will give you the chance to get on with the job.
Office equipment insurance
For larger businesses in California, there is the need for both production and administration equipment. A few examples of these are:
- Mobile mechanical equipment such as engines which are moved around between worksites
- Electrical equipment like transformers and cables that control power to your other equipment
- Safety devices like fire alarm systems connected to the phone network
- Control systems such as refrigerators to keep people and goods in the right temperature range.
- Digital equipment such as computers that are essential for the administration of business
- Specialized production equipment used on a manufacturing line
For all of these you should be thinking of the relatively affordable 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 carry the bill for idle-time of your staff, who are standing around with nothing to do while the problem is being fixed.
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To cover you in this, consider how breakdown insurance can help you.
Equipment breakdown insurance in California
Equipment breakdown insurance helps protect you in case of any stoppage or failure in your equipment. It will provide the following general payouts:
- Lost revenue while the equipment is out of action or being repaired
- spoilage of goods that were stored in temperature-controlled areas
- all ancillary expenses of the repairs, such as assessors, travel and accommodation for repairmen, etc.
- repair or replacement costs for any damaged equipment, including time and labor
Equipment rental businesses in California
A special case in all we are discussing is a business that does nothing else but hire-out equipment. For this sort 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 deliberate 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 CA a must-have protection.
What is the best form of equipment insurance in California
Since most businesses has equipment of some kind, cover is usually included in a standard Commercial Insurance package.
Alternatively, most insurance companies in california offer a specialized Business Owners Policy BOP that includes equipment insurance.
If you have any questions about insurance for small businesses in CA, you can usually find the answers on the yellow pages, 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 insurers 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 investigate what the terms and conditions of your policy are.
How much does equipment insurance cost in California?
It is difficult to give exact numbers because there are so many differences between what kind of equipment is covered, the value, and the risks.
Here are some guidelines:
- heavy equipment will cost about $50 per month for $25,000 cover, but this excludes breakdown insurance
- computer and office equipment with a value of $20,000 will cost around $20 per month, if you agree to a deductible of $250
- tools and equipment insurance in California costs about $3 per month per thousand dollars of cover
What is covered under electronic equipment insurance in California?
In California, it is possible to get cover for electronic equipment under a commercial insurance or BOP policy.
This will include monitors, and hard drives. All companies also include mobile devices that are specifically designed.
Office equipment like telecommunications systems are also covered.