If you are a business owner in Mississippi, you will want to be sure to sufficiently cover all of your business property against loss or damage. When doing so, it is important that you properly insure your essential business equipment.
Local independent insurance agents can help you be certain that your business equipment is suitably insured and that you are getting your coverage at a competitive price. Contact an insurance agent near you to learn more.
What Is Commercial Equipment Insurance?
Business equipment insurance is typically included as part of your commercial property insurance coverage. It is designed to cover loss or damage to your business-owned machinery and equipment if it is lost or damaged by a covered event such as fire, theft, or severe weather.
It is important to be aware that equipment insurance is not the same as equipment breakdown insurance, which covers sudden damage or malfunctions to well-maintained equipment and machinery due to risks like power surges and motor burnouts.
Many businesses in Mississippi that own and operate expensive machinery purchase both types of coverage.
How Much Does Business Equipment Insurance Cost in Mississippi?
Prices for business equipment insurance can vary from one company to the next. Costs are based primarily on the following.
- The type of equipment you are insuring
- The value of your business equipment
- The severe weather risks where your business is located
- Where and how your equipment is stored
- Your company’s claims history
Insurance companies typically provide you with one price for all of your commercial property insurance, so it is hard to say what percentage of that total cost is for your business equipment.
What Does Mississippi Business Equipment Insurance Cover?
Your business equipment insurance can cover the cost to repair or replace your business equipment if it is lost or damaged by hazards such as the following.
- Fires, including accidental fires and wildfires
- Severe storms, including hurricanes, tropical storms, electrical storms, windstorms, and hailstorms
- Other severe weather events, including tornadoes and unexpected freezing temperatures
- Property crimes including theft and vandalism
In some cases, you may need to purchase supplemental coverage such as the following.
- Inland marine insurance: This is designed to cover your portable business equipment when it is being transported over land or when it is being stored away from your place of business.
- Contractors equipment insurance: This is a form of inland marine insurance that is designed to cover your tools and machinery when they are being used at a job site.
- Equipment breakdown insurance: This is designed to cover your well-maintained equipment and machinery if it breaks down due to a covered event like a power surge, motor burnout, or short circuit. This insurance can also cover associated income losses.
- Spoilage insurance: This is often included as part of your equipment breakdown insurance. It can cover perishable items like food and medicine if they are spoiled due to an equipment failure or power outage.
An independent insurance agent can help you be certain that your equipment is fully and appropriately covered.
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What Does Mississippi Business Equipment Insurance Not Cover?
As is the case with commercial property insurance coverage, your business equipment insurance will not cover damage caused by floods or earthquakes. Fortunately, your equipment can be covered by supplemental policies.
- Flood insurance: The flood risk in Mississippi is rather high, particularly during hurricane season. Fortunately, businesses can purchase up to $500,000 in property coverage through a commercial flood insurance policy provided by the National Flood Insurance Program (NFIP).
- Earthquake insurance: While the risk of earthquakes is rather low in most of the state, it is a bit higher in northwestern Mississippi due to its proximity to the New Madrid Seismic Zone. By purchasing a supplemental earthquake insurance policy, you can rest assured that your business property, including machinery and equipment, is covered against any potential earthquake damage.
Talk to a local independent agent to learn more about your business equipment insurance coverage exclusions.
Can You Get Insurance for Business Equipment Kept at Your Home?
If you operate your business out of your house, your homeowners insurance can provide some coverage for your business equipment, but it is typically very limited.
If your business equipment is expensive, your home insurance coverage simply will not be enough to enable you to recoup your losses if this equipment is lost or damaged due to a hazard like theft or fire.
The best way for at-home businesses to cover their expensive business equipment is by purchasing a business owners policy that includes commercial equipment coverage.
How Can I Find the Best Business Equipment Insurance in Mississippi?
If you are looking for a suitable policy to cover your business equipment, a local independent agent can help. Because these agents are not tied to a specific insurance provider, they are free to shop around to find you great coverage at a competitive price.
There are more than 200 independent agents in the state of Mississippi. Talk to an insurance agent near you to start comparing customized quotes.