Manufacturing companies provide products for a lot of industries across the United States. Corporations rely heavily on getting this merchandise on time, so if delays become a problem you may face the threat of losing crucial contracts with major firms. As a manufacturer, you need to consider the impact that an equipment breakdown issue could cause your business.
First of all, your operations are immediately interrupted which brings up the question of how will you deliver your orders? If you don’t currently have backup equipment, you may need to find alternate facilities or rent equipment, either of which will increase your costs. Some of your customers likely cannot wait because they have deadlines as well, so there’s a good chance that orders may be cancelled, which means you will also suffer loss of revenue, along with possible damage to your reputation. Sussex County, New Jersey Business Insurance is necessary to provide some financial assistance to address these issues.
Examples of different types of mechanical issues
Air conditioning and refrigeration represents the number one source of breakdown claims. A number of different types of equipment can be affected, such as pressure vessel, mechanical, electrical and electronic. And, because many air conditioning units are located up on the roof, there can be the added expense removing the unit, often with the use of a crane or helicopter.
Boiler and pressure vessels are commonly used for heat, hot water, steam production and processing. Cookers, sterilizers and some cleaning equipment are other common types of pressure vessels. Boiler and pressure vessel accidents often occur due to defective welding, scale or sediment build-up, overpressure, or the failure of control or safety devices. Anyone in near vicinity would likely be injured when a major malfunction occurs.
The third most common issue for most manufacturers is electrical systems, which represent up to 15% of a building’s value. Components include transformers, panels and cables, and because these are interconnected, excessive voltage in one component can lead to significant damage to others.
If your company uses computers, elevators and escalators, or robotics, then an equipment issue could be in your future. Get the protection you need by having Business Insurance in Sussex County, New Jersey that includes equipment breakdown coverage.