Equipment Insurance in Pennsylvania
Managers of companies of all sizes in Pennsylvania – PA are increasingly relying 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 requirement 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 Pennsylvania.
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The general sort 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 insured.
Why do you need equipment insurance in Pennsylvania?
Tools and equipment are essential to daily conduct 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 pay for 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 Pennsylvania
Many private services in PA offer the complete spread of repairs and replacements for domestic customers. A sample of these includes:
- Roofing shingle repairs
- Electrical work
- General handyman services
- General construction
- Solar panel installation
- Fencing installation
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 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 Pennsylvania handyman license demands special insurance covers.
Tools and equipment for on-site work such as we wrote about above have some vulnerabilities in Pennsylvania because they don’t have the protection that you can provide when they are stored inside your own home.
They are out in the open, 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.
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For larger businesses in Pennsylvania, there is the need for both production and administration equipment. A few examples of these are:
- Specialized manufacturing 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 communication systems 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 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 staff, who are standing around with nothing to do while the problem is being fixed.
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To cover you in this, think about how breakdown insurance can help you.
Equipment breakdown insurance in Pennsylvania
Equipment breakdown insurance helps insure you in case of any stoppage or failure in your equipment. It will provide the following general cover:
- spoilage of goods that were stored in temperature-controlled areas
- 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.
- Lost income while the equipment is out of action or being repaired
Equipment rental businesses in Pennsylvania
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.
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 PA a must-have protection.
What is the best form of equipment insurance in Pennsylvania
Since most businesses has equipment of some kind, cover is usually included in a standard Commercial Insurance package.
Alternatively, several insurance companies in pennsylvania offer a specialized Business Owners Policy BOP that includes equipment insurance.
If you have any questions about insurance for small businesses in PA, 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 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 check what the terms and conditions of your policy are.
How much does equipment insurance cost in Pennsylvania?
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:
- heavy equipment may cost around $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 Pennsylvania costs approximately $3 per month per thousand dollars of cover
What is covered under electronic equipment insurance in Pennsylvania?
In Pennsylvania, it is possible to get cover for electronic equipment under a commercial insurance or BOP policy.
This will include laptops, and modems. All companies also include mobile devices that are specifically designed.
Office equipment like telecommunications systems are also covered.