Upgrading Equipment? Upgrade your Business Insurance Too
Any changes to your California business mean you probably need to think about making adjustments to your commercial insurance. This is particularly important when it comes to upgrades of your machinery and equipment.
In a manufacturing business, your equipment is one of your most important assets. It’s important to keep all your machines well maintained and in good working condition to minimize the risks of breakdowns and disruptions to your productivity. However, nothing lasts forever, and eventually, you may need to face the need for some major upgrades or replacements.
Planning for an upgrade means you may be able to make the change over without too much disruption to your normal activities. However, replacements, repairs or upgrades that occur due to a breakdown may be a little more difficult to manage. You may need to wait if the equipment is highly specialized, or has to come from a great distance and that means lost productivity, which could impact heavily on your cash flow.
To manage the down time, you need an alternative source of emergency funds. Equipment breakdown, business interruption and income protection insurance are all policies you need to have in place as part of your business insurance package. Once the upgrade is done, you may also need to adjust your level of coverage to account for possibly higher replacement costs for new equipment. Get your policies out and arrange to meet with one of our agents to review and adjust your coverage so that it is up to date with your upgrades.