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Commercial Insurance Tips

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Cover Your Heavy Equipment Liability with Commercial Equipment Insurance


Understanding Commercial Equipment Insurance 

Commercial equipment insurance covers the cost of repairing or replacing business equipment when loss or damage occurs. If you own a business that relies on machines, heavy equipment, or specialty tools, purchasing commercial equipment coverage is vital. It is especially important to purchase this insurance if you run your company on a commercial property you do not own. Even if you own the property you operate business on, commercial equipment is not covered under general business insurance policies.

Leasing vs. Owning Equipment 

It is important to note that equipment insurance policies do not cover leased equipment in Florida State. In order to make an insurance claim on commercial equipment, you must own the equipment listed on your policy. Therefore, if you need coverage for any leased equipment, you must contact the insurer of the company who owns the equipment you are leasing. If you own all of your commercial equipment, purchasing an equipment policy is the best way to ensure that your items will be fixed or replaced quickly when losses occur. 

What is Covered With Commercial Equipment Insurance 

There are many losses that are covered under equipment insurance. Electrical wire burnouts, machine burnouts, compressor failures, fan and blower break-downs, cracked pipes, overheated machinery, property damage, property loss, interrupted business due to hazardous fumes or equipment malfunctions, and general machine repair are all covered under equipment insurance policies. General equipment, such as air conditioners, is also covered under this type of policy. Basic commercial policies and fire policies do not cover break-downs or equipment damage, which is why purchasing this insurance is essential. 

Purchasing Commercial Equipment Insurance 

Purchasing commercial equipment insurance will give you peace of mind while running your business. You’ll never have to worry about enduring a financial loss due to equipment malfunctions. Repairing and replacing heavy machinery and electronic devices is costly, and operating your business without ‘the essentials’ can negatively impact on your business’s bottom line. Unfortunately, accidents occur frequently and all machines eventually need repairs. The best way to protect your business and finances is to purchase quality equipment insurance.

Determining how much commercial equipment insurance you need can sometimes feel overwhelming. The answer depends on the industry you work in, your specific business, the equipment you use, and the amount of money you would stand to lose if something should happen to that equipment. Your costs will depend on the same variables, and might also include the level of financial risk you pose to a potential insurance carrier. Your insurance rate will depend on whether you have made prior claims. Use a qualified agent in Florida to review your commercial equipment coverage options in the state. An agent can help you find the right policy for your business and your budget.

Type of Equipment 

There are several different kinds of policies, depending on your industry and your equipment. You can find coverage for medical and dental equipment, computer equipment, restaurant equipment, and construction equipment. Talk to your agent about the industry you work in, so you can get an understanding of what the typical commercial equipment coverage entails for that area.

Getting insurance for the machines and other equipment you use is especially important if you have financed that part of your business. If the item at risk does not belong to you or your company outright, you have an additional financial incentive to insure it. The finance company will expect you to pay for the piece of equipment in its entirety, even if disaster strikes and the equipment is no longer functional. Make sure you have an insurance policy that will pay off the loan you took out to purchase the items.

Understanding Your Policy 

Most policies are reviewed annually. Whether you are looking for new commercial equipment insurance, or you need to update your policy, talk to your Florida commercial insurance agent about your options. Your goal is to protect your business and all the assets that come with it. Your agent or broker can help you understand your options, assess your risk, and make the best coverage decision for you and your business.

Whether insuring owned or rented heavy equipment, contractors should always seek professional assistance so that they can fully discuss the proper and different types of applicable and available coverage. Once an insurance agency has been selected, a contractor must explore all of the policy options provided, confirming that their own legal responsibility is well covered.

Obtaining proper coverage can be time-consuming and seem overwhelming, yet diligence in selecting an insurance provider and obtaining the most comprehensive coverage ensures that a breakdown, theft, or accident won’t severely impact a contractor’s bottom line.


If you own a Tampa Bay  business and are in need of a commercial equipment insurance policy at an affordable rate, you should call Mid Florida Insurance Professionals at (813) 962-3082 for a quick quote on all commercial insurance plans.