September 04, 2024
By Charlie Lage
Equipment Breakdown Underwriter, Americas, AXA XL
Today’s business equipment is more high-tech and specialized than ever. Despite their upkeep and advanced features, unforeseen breakdowns, malfunctions, or damage can disrupt operations and result in substantial financial losses. Equipment Breakdown insurance provides a safety net, shielding businesses from these unexpected equipment failures.
Like other property coverage, the Equipment Breakdown market has experienced rate increases. As a result, businesses are shopping around for coverage with more buyers turning to the surplus lines market to address their equipment breakdown needs.
Complexity Complications
Equipment breakdown rates are rising for several reasons. For one, the value of complex equipment continues to climb, right along? with the cost of fixing it. Fixes not only include more expensive replacement parts, but often require more specialized technicians for diagnosis and repairs with higher service fees and longer wait times.
Supply chain disruptions and longer lead times for parts and new equipment are also impacting rates. Ongoing supply chain disruptions have extended lead times for parts and new equipment, from 30 days to potentially six months increasing possible disruption.
Access to flexible insurance options offered by surplus lines markets provides another valuable protection to keep equipment up and running.
Predict and Protect
Businesses can take steps to prevent breakdowns by modernizing their preventive and predictive maintenance practices to identify potential risks and take proactive measures to prevent breakdowns. This can include ensuring that employees are properly trained to operate and maintain equipment can reduce the likelihood of breakdowns caused by human error. Using available technology to monitor equipment performance in real-time can provide early warnings of potential issues and allow for proactive maintenance.
When breakdowns do occur, a contingency plan helps. Developing a contingency plan for equipment breakdowns, including access to spare parts and backup equipment, can help minimize downtime.
Access to flexible insurance options offered by surplus lines markets provides another valuable protection to keep equipment up and running.
*This article was first published in the and reproduced here with permission.
About the author
Charlie Lage is an Equipment Breakdown Underwriter for AXA XL’s Property & Multinational 色多多视频 Solutions, Americas. He is based in New York and can be contacted at Charles.lage@axaxl.com
