Unreliable equipment can be the death knell for a business, with the costs of equipment failure and downtime tricky to accurately predict and calculate. The cost extends well beyond the expense of new parts. You also need to factor in the inconvenience and disruption to your business through:
These downsides have negative ripple effects on your staff, customers, the supply chain, and your brand.
For example, landscaping businesses need to seek out good quality gear to do their work efficiently, within the budget, and on time. Low-quality equipment will divert cash flow to repairs, creating downtime while that’s happening. The hassle will gnaw at your workers’ confidence about equipment reliability, safety, and morale as they face unnecessary hurdles to do their work. Customers won’t be happy with an incomplete or delayed job.
What then, are the best practices your business can adopt to calculate the actual cost of equipment failure?
Keep in mind, these common machinery failures and what you can do to prevent them:
Whichever sector or industry you’re in, you can also keep a step ahead of any issues by:
These measures will hand you reliable data to calculate your potential and actual losses through equipment breakdown.
Even if you have great systems and checks in place, then events out of your control – such as a power surge – can still happen for equipment to go awry. As part of your risk minimisation strategy, you might think your commercial property insurance comes to the rescue, but unless you ask for machinery breakdown cover, you won’t be protected.
For peace of mind, equipment breakdown insurance bridges the gap – it’s much like accident, health, and disability cover, but for your gear. We can guide you on customising this insurance. Usually, it includes:
Contact us today, and we can ensure your risk assessment for equipment breakdown is based on solid advice.