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The first problem is the cessation of activities
You must consider all the eventualities that arise from this situation. For example, you have to think about an alternative to ensure its production. If you don’t have a spare machine, the only options available to you will be to rent the necessary equipment or buy spare equipment. Both perspectives are obviously synonymous with additional costs. In addition, there are the constraints of delivery deadlines to be respected. The setback that can result from defective production equipment can lead to the cancellation of the order, i.e. losses, questioning of your professionalism or other consequences.
It should be noted that technical problems such as short circuits, breakdowns of machinery such as the boiler or other appliances are not covered by property insurance. These are the responsibility of equipment breakdown insurance. This machinery breakdown insurance policy covers the various technical problems that occur on the electrical parts, air conditioning, various pressure vessels, or mechanical machinery.
Electrical problems
All production equipment that runs on electricity is categorized in this area. It is also important to know that the entire electrical system has a significant value within a building. Items like transformers, solar panels, and wiring are all valuable pieces of equipment to find within a building. In the event of a power problem, the failures of the photovoltaic panels often lead to the cessation of production. For a company, this is a catastrophic situation that can lead to heavy losses.
For a shopping mall , for example, cutting off the electricity for just several days can result in a loss of up to $3000,000. This provides insight into the importance of the electricity system.
Problems with packaging facilities (refrigeration and air conditioning)
The majority of refrigeration or air conditioning equipment breakdowns are included in equipment breakdown losses. This is explained by the presence of elements that are connected to the fields of mechanics, electronics, electrical, etc. In addition, troubleshooting this type of device is often expensive. Their installation at height requires, in most cases, the use of specific equipment such as ladders, or even cranes. This is the case of a breakdown that concerns the cold rooms. An increase in temperature, even if only ten degrees, is enough to cause significant costs, in particular because of the interruption of the conservation chain. In addition to this loss, there are repair costs and the possibility of a production stoppage. It is important to have business insurance that covers equipment breakdown.
Problems with pressure vessels
Pressure vessels and boilers have one thing in common, the difference in the pressure level between their internal and external spaces. These are cookers, sterilizers and all cleaning devices as well as hot water or steam production equipment.
Very often, breakdowns for this type of appliance are related to poor installation, sloppy maintenance (poor cleaning of the appliance or lack of supervision), an approximate safety layout or residual accumulation.
To account for the effect of a breakdown on refrigeration and air conditioning equipment, here is a small example of a situation. Due to poor maintenance, the hot water system of a laundry room has experienced an increase in pressure. The damage caused by the explosion had repercussions on the walls and ceiling. The explosion also injured two people. In terms of costs, this simple technical problem resulted in $57,450 in losses, including $31,700 for the destruction of the facilities.
Communication issues
Communication problems include telephone failures, alarm and fire prevention systems, and computers in distribution units. Very often, these devices contain fragile electronic elements, which exposes them to the risk of frequent breakdown.
Variations in electrical current, manufacturing or installation defects, pests, exposure to humidity, clumsiness in use are all factors that can cause problems in the communication and information system. For example, because of a phone failure, a real estate developer suffered a loss of $39,000.
Problems with mechanical devices
First of all, it is necessary to determine the problems judged in the mechanical field. For a company, it is the breakdowns that occur on production equipment, transmission equipment and all those that operate on mechanical energy. These are, for example, elevators as well as all devices with an electric motor such as water pumps, fans, etc. These facilities are often found in a production plant or on the premises of a company.
As for mechanical breakdowns, there are many reasons. For example, there is vibration, handling errors or the durability of the elements of the device in question. In addition, the source of the problem can also be the result of poor controls. Today, professionals use electronic devices to carry them out, but this method does not take into consideration problems outside the functionality of the machines. Hence their exposure to what are called equipment breakdowns. It is therefore important to properly insure your business for these risks.
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