5 Reasons You Should Consider Carrying Insurance on Your Tools and Equipment

by Editor on January 22, 2014

5 Reasons You Should Consider Carrying Insurance on Your Tools and EquipmentWhether you have a business or you own tools and equipment for personal use, there are several good reasons to get insurance for these items. Many people don’t think twice about getting home and automobile insurance but overlook getting protection for valuable equipment. Let’s look at five reasons why you should seriously consider getting such items insured.

1. Homeowner’s Insurance May Not Cover It

It’s common nowadays for people to work at home. This includes not only people with home-based businesses, but employees who telecommute and people with part time businesses they run from home. If this describes you, don’t assume that your homeowner’s insurance will automatically cover your tools and equipment. In many cases, business equipment is not covered by such policies and you will need additional protection. Checking out a business general liability insurance quote will help ensure your insurance policy covers the tools and equipment associated with your small business.

2. Equipment Can Break Down

If you are dependent on certain equipment to run your business, what will happen if it breaks down? This can happen for a variety of reasons. In some cases, you may find that the warranty on your equipment has expired or that it doesn’t cover the circumstances of the breakdown or malfunction. In such cases, having your equipment insured can save your business. There are specific policies that cover this type of scenario.

3. Protection Against Theft

No matter what type of security system you have for your home or business, theft is always a possibility. If you have costly tools or equipment, these can be very attractive to burglars and other types of thieves. Some businesses are even targeted by unscrupulous employees or former employees who have access to the office or warehouse. This is one reason that insuring your equipment is a good idea.

4. Your Equipment May be More Valuable Than You Realize

Many people underestimate the value of their equipment. Even a basic home office, for example, probably includes a wide assortment of devices and equipment. If you have specialized equipment of any kind it will be even more valuable. If any of these items are damaged or stolen, or if they break down unexpectedly, it could be disastrous if you’re not prepared. Insurance can protect you against unexpected occurrences. Take inventory and figure out how much your tools and equipment are really worth. You will probably conclude that they are worth protecting.

5. You Can Afford It

Insurance policies vary in cost, but insuring your tools and equipment is probably cheaper than you realize. For an affordable monthly or annual premium, you can have the peace of mind of knowing that your valuable assets are protected. You can research insurance policies and find one that best suits your needs. You may be surprised at how reasonable such policies are. When you compare this against the potential losses you would suffer if you were lost your equipment, you can see why having such insurance is a wise investment.

These are some of the top reasons why it’s worthwhile to insure your tools and business equipment. No one expects disasters, breakdowns or theft of equipment. Yet these unfortunate occurrences happen to people every day. A good insurance policy is the best way to make sure you aren’t devastated if something like this does happen.

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