What happens if key machinery fails during a construction project? Machinery failures can occur at any point in time, even if machinery is properly maintained. Whether a machine encounters an unexpected difficulty or has manufacturer flaws, a project could be delayed — and that can cost a construction company (and its clients) both time and money.
The Dangers of Key Machinery Failure
Construction projects are expensive and time-sensitive projects. Often, each phase of the project has to be completed under a fairly specific time limit, or work done by additional contractors will be delayed. The delay of an extensive project can cost a company thousands of dollars or even millions, depending on the scope of the project and its timeline.
When key machinery fails, a construction company may be held hostage: niche machinery may take time to get replacement parts for, and it may not be economically feasible to replace the machinery as a whole. In construction, some machinery simply cannot be procured quickly and will need to be specially acquired and shipped in. Ultimately, a single machine failure could spell disaster for a business.
Equipment damage can happen at any time, whether it’s a faulty product or just an entirely unforeseen environmental issue. Equipment breakdown coverage (and construction liability insurance) will protect you against sudden physical breakdown or damage to your most important equipment.
The Importance of Construction Liability Insurance and Equipment Breakdown Coverage
Insurance for construction companies is intended to protect against exactly this type of equipment failure. With Construction Liability Insurance, a business is protected against things such as:
- A loss of revenue while the business is shut down due to a lack of machinery.
- Damages to a client due to broken down machinery, including property damage or delayed project costs.
- Costs related to replacing and repairing damaged machinery.
When equipment breaks down, construction liability insurance can help a construction company find solutions. The more expensive and niche a piece of key machinery is, the more important breakdown coverage is. Breakdown coverage will make it faster, easier, and more affordable for a construction company to acquire the machinery that they need quickly, and to get back in business.
Some of the costs of having a key piece of machinery fail are invisible. If construction projects are delayed habitually, then your construction company may suffer reputation damage — and it may make it more difficult to secure projects in the future. You can avoid this type of business disruption through the right insurance. Contact Daniels Insurance Inc today to find out more about the best in construction coverage.
About Daniels Insurance, Inc.
At Daniels Insurance, Inc., we have a unique understanding of the risks that businesses like yours face on a regular basis. With the backing of our comprehensive coverages and our dedication to customer service and quick claims resolution, your business will be fully protected. For more information, contact us today at (855) 565-7616.