Insurance
Getting Equipment Insurance
Equipment insurance is insurance that covers the loss or damage to equipment or property that you usually use for your business. If you run a business where expensive equipment is necessary for smooth operations and service delivery, getting equipment insurance also becomes necessary and can save you from any liability you can incur in the course of doing business.
Under any form of insurance, the insurance company will be responsible for paying the cost of any liability that you incur as stated in the policy. In exchange for them bearing the risk, you will have to pay premiums. There are generally limits on how much cost the insurance company can carry, and several factors influence the kind of premium you will get. If your business is associated with significant risk, you may find yourself paying more premiums than you normally will.
The equipment covered under the agreement generally includes all your business equipment, most likely within the confines of your business space or worldwide. For insurance covering equipment within the confines of your business space, the insurance will generally cover defined perils, which will generally include;
- Fire
- Explosion
- Lightning
- Malicious persons (apart from thieves)
- Flood
- Storm
- Water Escape from any apparatus, tank, or pipe
- Earthquakes
- Impact by any animal or road vehicle
- Subterranean fires
- Civil commotion
- Riots
- Accidental loss, damage, or destruction and theft.
Everything will be subject to unique terms and conditions peculiar to such an insurance policy.
In the case where the insurance covers all your equipment on a worldwide basis, this is usually called all risks cover and touches on every piece of equipment you have within or outside your premises. It is ideal if you take equipment out on a regular basis and ensure that they are fully protected no matter which part of the world they are.
Business equipment insurance is not the same thing as business interruption insurance. While business equipment covers the property, it will not cover any revenue loss as a result of damage or loss of property. It is business interruption insurance that will cover the decrease in income as well as any increase in cost or additional expenses resulting from the insured damage or loss of property.
When it comes to determining how much insurance you need, the first thing you need is to consider the cost of replacing the equipment, and this will be your starting point. When seeking insurance, you can come to us, and we will assist you with getting the insurance as well as any other issues related.
Disclaimer: This information is only available as a general guide on the government policies. It is derived from the official Australian government sources. We do not bear any responsibility for the commentary and analysis of this public domain information nor any liability for how the facts are interpreted. It is recommended that you speak with an accountant or financial advisor to get precise information and advice on your situation.