Equipment Insurance in New Jersey

Managers of companies of all sizes in New Jersey – NJ are increasingly relying on getting the proper levels of insurance cover for the equipment that is needed to ensure the success of their operations.

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This has created a special necessity in the market for information about Equipment Insurance.

We hope this short article will give you the knowledge about what your best options are in New Jersey.

The general type of equipment can vary depending on what sector 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.

equipment insurance New Jersey

Why do you need equipment insurance in New Jersey?

Tools and equipment are essential to daily conduct 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 buy whatever you now need, and will quickly bring you back to normal operations and keep your customers happy and the cash flowing.

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Home service providers in New Jersey

Many private services in NJ offer the complete variety of repairs and replacements for domestic customers. A sample of these includes:

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 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 New Jersey handyman license requires special insurance covers.

Tools and equipment for on-site work such as we outlined above have some extra in New Jersey 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 New Jersey, there is the need for both production and administration equipment. A few examples of these are:

  • Specialized output equipment used on a manufacturing line
  • Digital equipment such as computers that are essential for the administration of business
  • Safety devices like fire alarm systems connected to the phone network
  • Mobile mechanical equipment such as motors which are moved around between worksites
  • Electrical equipment like electrical control panels and cables that control power to your other equipment
  • Control systems such as air conditioners to keep people and goods in the right temperature range.

For all of these you should be considering the relatively low cost of insurance, compared to the considerable losses that your business could sustain if something fails.

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, consider how breakdown insurance can help you.

Equipment breakdown insurance in New Jersey

Equipment breakdown insurance helps protect you in case of any stoppage or failure in your equipment. It will provide the following general cover:

  • spoilage of produce that were stored in temperature-controlled areas
  • repair or replacement costs for any out-of-action equipment, including time and labor
  • all necessary expenses of the repairs, such as assessors, travel and accommodation for repairmen, etc.
  • Lost revenue while the equipment is out of action or being repaired

Equipment rental businesses in New Jersey

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 dangers of damage, loss and theft. 

For example, equipment has to be moved around extensively and sometimes stored in insecure and unsafe environments.

In addition, 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 NJ a must-have protection.

What is the best form of equipment insurance in New Jersey

Since every business has equipment of some kind, cover is usually included in a standard Commercial Insurance package.

Alternatively, many insurance companies in new jersey offer a specialized Business Owners Policy BOP that includes equipment insurance.

If you have any questions about insurance for small businesses in NJ, you can usually find the answers on the web, 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 must 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 New Jersey?

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 general guidelines:

  • tools and equipment insurance in New Jersey 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
  • heavy equipment may cost around $50 per month for $25,000 cover, but this excludes breakdown insurance

What is covered under electronic equipment insurance in New Jersey?

In New Jersey, it is possible to get cover for electronic equipment under a commercial insurance or BOP policy.

This will include monitors, and hard drives. Most companies also include mobile devices that are specifically designed.

Office equipment like telecommunications systems are also covered.
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