Every time hydraulic machines in your warehouse break down, your mind starts calculating the amount of money you’ll have lost by the time the “break-down” is dealt with.
There’s no foolproof way to prevent mechanical damage on hydraulic equipment. Thus, investing in machinery breakdown insurance might be the best that you can do to put the above losses in check. This article highlights three things that you should know about machinery breakdown insurance.
Insurance Increases The Need For Maintenance
You might be tempted to believe that you won’t have to service hydraulic machines as frequently as you used to once you get breakdown insurance. You’re covered after all, right? Wrong.
On the contrary, having this type of insurance may require you to adhere to a more stringent maintenance schedule for your hydraulic equipment.
When it’s time to make a claim, you will need to prove that the hydraulic machine did not break down as a result of negligence. Failure to stick to the maintenance schedule (as recommended by the equipment manufacturer) will often be interpreted as negligence by an insurance agency. This is sufficient grounds for the insurer to deny your claim(s) for compensation.
You Can Make Money From DIY Repairs In Case Of Breakdown
In order to minimize losses, your hydraulic equipment should be back in operation as soon as possible. Many times, the practicalities involved in hydraulic equipment repair (e.g. importation of spare parts and transportation of equipment to and from the repair shop) delay the repair process.
For this reason, insurance service providers will often agree to finance in-house repairs to hydraulic equipment if you or your employees have the required expertise. In such cases, insurance companies often pay for the cost of purchasing spare parts, the cost of labour and the partial cost of overhead charges during the duration of repairs.
Insurance Might Get You Stand-in Equipment In case Of Breakdown
Machinery breakdown insurance policies differ considerably from one insurer to the next. However, many insurance companies will pay for the cost of leasing hydraulic equipment that you’ll use until repairs to your equipment are completed. This is in addition to paying for the cost of repairs to your equipment.
For example, if contaminated hydraulic fluid causes the simultaneous failure of several machines, operations in your warehouse may grind to an impromptu halt. With a machinery breakdown policy, the impromptu halt is likely to be a temporary situation.
For more information about the repair process for your machinery, contact a company that specializes in heavy machining.