Equipment Insurance in Michigan
Managers of companies of all sizes in Michigan – MI are increasingly depending on getting the proper levels of insurance cover for the equipment that is necessary to ensure the success of their operations.
This has created a special requirement 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 Michigan.
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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 point out the main features of how businesses have been ensuring that their investment in equipment is properly protected.
Why do you need equipment insurance in Michigan?
Tools and equipment are essential to daily performance of your business activity. If they are stolen, lost or damaged, then all work must come to a halt until they have been replaced.
So this is a double need. Insurance will help you to pay for whatever you now need, and will quickly bring you back to normal operations and keep your customers happy and the income flowing.
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Home service providers in Michigan
Many self-employed services in MI offer the complete spread of repairs and replacements for domestic customers. A sample of these includes:
- Roofing shingle repairs
- Solar panel installation
- Fencing installation
- General handyman services
- General construction
- Electrical work
Some examples of the typical equipment insurance requirements for such businesses includes:
A solar panel installer 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 Michigan handyman license demands special insurance covers.
Tools and equipment for on-site work such as we outlined above have some special in Michigan because they don’t have the protection that you can provide when they are stored inside your own home.
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 adequate insurance will give you the chance to get on with the job.
Workshop equipment insurance
For larger businesses in Michigan, there is the requirement for both production and administration equipment. A few examples of these are:
- Specialized output equipment used on a manufacturing line
- Mobile mechanical equipment such as generators and pumps which are moved around between worksites
- Safety devices like security systems connected to the phone network
- Control systems such as freezers to keep people and goods in the right temperature range.
- Digital equipment such as computers that are essential for the administration of business
- Electrical equipment like transformers and cables that control power to your other equipment
For all of these you should be thinking of the relatively low cost of insurance, compared to the substantial 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, give regard to how breakdown insurance can help you.
Equipment breakdown insurance in Michigan
Equipment breakdown insurance helps insure you in case of any stoppage or failure in your equipment. It will provide the following general benefits:
- spoilage of produce 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
- Lost revenue while the equipment is out of action or being repaired
Equipment rental businesses in Michigan
A special case in all we are discussing is a business that does nothing else but hire-out equipment. For this kind of business, there are extra dangers 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 MI a must-have protection.
What is the best form of equipment insurance in Michigan
Since every business has equipment of some kind, cover is usually included in a standard Commercial Insurance package.
Alternatively, several insurance companies in michigan offer a specialized Business Owners Policy BOP that includes equipment insurance.
If you have any questions about insurance for small businesses in MI, 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 should give details of their more expensive and specialized equipment such as generators, concrete mixers, diggers etc.
Most policies 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.
Out-of-date 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 Michigan?
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 some guidelines:
- heavy equipment may cost about $50 per month for $25,000 cover, but this excludes breakdown insurance
- tools and equipment insurance in Michigan costs around $3 per month per thousand dollars of cover
- computer and office equipment with a value of $20,000 will cost around $20 per month, if you agree to a deductible of $250
What is covered under electronic equipment insurance in Michigan?
In Michigan, it is possible to get cover for electronic equipment under a commercial insurance or BOP policy.
This will include monitors, and licensed software. Some companies also include mobile devices that are specifically designed.
Office equipment like telecommunications systems are also covered.