{"id":213344,"date":"2025-04-29T19:25:17","date_gmt":"2025-04-29T19:25:17","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/insurance\/whats-the-difference-northbridge-insurance\/"},"modified":"2025-04-29T19:25:17","modified_gmt":"2025-04-29T19:25:17","slug":"whats-the-difference-northbridge-insurance","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=213344","title":{"rendered":"What\u2019s the difference? \u2013 Northbridge Insurance"},"content":{"rendered":"


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As a manufacturer, your equipment is the backbone of your business. A single breakdown or an unexpected failure \u2014 whether from a power surge, severe weather, or mechanical failure \u2014 can disrupt operations, impact revenue, and harm your reputation.<\/p>\n

Many businesses assume that standard commercial property insurance is enough, but it may not fully cover the costs associated with damaged or malfunctioning equipment. To ensure your business is adequately protected, it\u2019s important to understand the difference between equipment insurance and equipment breakdown insurance, and whether your operations may require both. <\/p>\n

The risk of equipment failure<\/h2>\n

Consider what would happen if your production system came to a halt. Do you have a backup system? How quickly could you rent, repair, or replace the necessary machinery or equipment? In the meantime, how would your operations be disrupted? Will you have to delay orders? If customers can\u2019t wait, how much revenue could you lose? And how could that damage your company\u2019s reputation?<\/p>\n

Every minute of downtime equates to lost productivity and revenue. Repairing or replacing equipment can be costly, and delays may extend from hours to weeks if specialized technicians or parts are required.<\/p>\n

At the same time, manufacturing equipment is becoming increasingly more sophisticated, with more complex components, sensors, robotics and even Internet connectivity. While these innovations enhance efficiency, they also introduce vulnerabilities. For example, a power surge can damage multiple interconnected parts on your production line. This makes it crucial to have the right insurance coverage.<\/p>\n

Understanding equipment insurance<\/h2>\n

Commercial property insurance is designed to protect your business premises and its contents, from furniture and inventory to tools and equipment. This coverage provides protection for losses or damage to your property by external sources, such as fire, hail, windstorms, theft, or vandalism. However, standard property insurance often doesn\u2019t cover the specific risks associated with industrial or manufacturing equipment.<\/p>\n

Manufacturer\u2019s insurance or equipment insurance (sometimes called an equipment floater) provides additional coverage for essential machinery used in your operations. However, this coverage is related to loss or damage from external causes like severe weather or a fire, rather than internal causes, such as mechanical or electrical breakdown.<\/p>\n

What is equipment breakdown insurance?<\/h2>\n

Equipment breakdown insurance goes above and beyond manufacturer\u2019s insurance or equipment insurance to include internal causes of loss and damage. This includes the sudden, accidental breakdown of your machinery and equipment, such as electrical short circuits, motor burnouts or mechanical breakdowns. It can even help cover negative publicity costs stemming from equipment-related product failures or delivery delays, offering peace of mind in the age of online reviews and real-time feedback.<\/p>\n

While some equipment may be under warranty from the manufacturer, these warranties often come with limitations and exclusions like loss of productivity, product impairment, or temporary relocation. Once the equipment is no longer under warranty, the responsibility to repair or replace it falls on the owner.<\/p>\n

Equipment breakdown coverage not only helps to cover the costs of repairing or replacing damaged equipment, but it can also include costs related to diagnosis fees, labour, lost income, spoiled inventory, as well as costs to expedite parts.<\/p>\n

With equipment breakdown coverage, you have the option to cover specialized equipment, such as production machines. There are also two types of coverages to consider:<\/p>\n