Without an insurance to cover these machines as well as the manufacturing plant, your business might be in danger of being closed down as soon as disaster strikes. It is recommended that the insurance policy that you will get covers all equipment from:
- Smoke, fire hazards and explosions.
- Leakage of either oil or water inside the plant.
- Act of vandalism and theft.
- Resulting damage because of an attempt to suffocate any building fires.
- Earthquakes, floods and other major disasters which are caused by nature.
- Old for new. In this category, the equipment such as the AIM machinery may be replaced while the market value used is of the present one.
- Indemnity Cover. In this case, the general depreciation of the equipment will be taken into account by the insurance company.
Before deciding on getting an insurance policy for your plant, make sure that you have an idea of how much your business is worth. In the event that the policy covers the ‘old for new’ type then the value should be the replacement and not the actual value. Check all the limitations included in the policy as well as the payout in any unlikely event happening. Also inquire if accidental damage is also considered as one of the causes covered by the policy.
Once you have decided with the policy you like, it is recommended that all information used in the application form is correct and not false. Any false information could jeopardize the company’s claim. Purchased policy must be checked once in a while in order to be updated of any changes.