New Jersey Business Equipment Insurance

A breakdown in your business equipment or machinery can result in millions of dollars in losses. The right kind of business insurance can save your company, which is why New Jersey businesses need commercial business equipment insurance.

Equipment insurance is not for everyone, so working with a New Jersey independent insurance agent is the ideal first step in determining your insurance needs. Here's why a business may want commercial equipment breakdown insurance.

What Is Commercial Equipment Insurance?

According to insurance expert Jeffrey Green, commercial equipment insurance is a type of business insurance that covers repair and replacement of both the machinery and other property damaged as a result of a breakdown. 

Commercial equipment insurance is also referred to as boiler and machinery insurance and it is not included in your standard business insurance policy. That means you must add it in if you need it. 

What Does Commercial Equipment Insurance Cover in New Jersey?

Commercial equipment insurance has different covered risks depending on the type of machinery. The most common coverages include:

The coverage will typically include these risks:

Your New Jersey independent insurance agent can further explain what coverages are included in your commercial equipment policy.

What Doesn't Commercial Equipment Insurance Cover in New Jersey?

Green pointed out that there are several scenarios that are excluded from commercial insurance coverage. Causes of loss not usually covered are computer viruses, leaking, and negligence. There are also additional losses that will be outlined in the policy that won't be covered.

In addition, there is property that is not included in commercial equipment insurance. This includes damage from equipment breakdowns on aircraft, watercraft, computer media, vehicles, and any other named property in the policy.

Business Equipment Insurance Costs in New Jersey

The cost of your commercial equipment insurance will depend on the risk of the industry you're in and the type of equipment you have. Insurance carriers will also look at:

• Age and current condition of the machinery
• Claims history
• Location of your business
• Safety measures in place
• Common local disasters

Premium costs can range from $15 a month to several thousand dollars a month. A higher-risk industry like a construction company is likely to pay more than a retail store. 

Your New Jersey independent insurance agent can shop business equipment insurance quotes for you. They can provide estimates on what premiums may cost you. 

Net premiums written by line, property/casualty insurance, 2017-2019 ($ millions)

What Is Commercial Equipment Warranty Insurance? 

Often when you purchase equipment you'll have the option to purchase a warranty. Commercial equipment warranties are similar to a commercial equipment insurance plan, but there are some significant differences.

• Exclusions:  Warranties typically exclude any damage that is caused by operator error. Under a commercial equipment policy, operator error would be covered. 
• No reimbursements: Equipment breakdown can result in lost income. Reimbursement for lost income is often included in commercial equipment insurance, but is not covered in warranties. 
• Time limit: Warranties will only cover damage for a certain number of years, typically between one and five. Any damage outside of the warranty period limit will have to be paid out of pocket.

For some businesses a warranty may provide the coverage they need. However, a warranty can still leave you highly exposed to big repair or replacement bills. It's best to weigh both options with your insurance agent.

Do You Need Business Office Equipment Insurance in New Jersey?

Office equipment is critical to keeping a business running, but may not have the value necessary to warrant a commercial equipment insurance policy. For these businesses, a New Jersey commercial property policy can provide the proper coverage.

Commercial property insurance will help repair or replace your office equipment if it's damaged by fire, water, or other external covered risks. 

If you run your business out of your home, your New Jersey homeowners policy will not provide coverage for office equipment. The best solution is to add equipment insurance as an add-on to your policy to make sure you're covered.

How an Independent Insurance Agent Can Help

There are currently 485 TrustedChoice agencies located in New Jersey that are ready to help you protect your business equipment with commercial equipment insurance. A New Jersey independent insurance agent is an expert in business insurance and can help you determine if a commercial equipment policy will benefit you and your business.