Preventing Equipment Breakdown
Equipment breakdowns are a part of life in the business world. Each year hundreds of millions of dollars are lost due to equipment breakdown. Today, most every business is heavily dependent on computers, electronics and various other mechanical processes – small glitches can result in big problems, and even bigger losses.
Preparedness is the hallmark of a successful business, and as a business owner, it is your job to put your business in the best position to succeed. It is important then that you develop a business continuity plan that mitigates the risk of equipment breakdown.
Developing a Business Continuity Plan
Step 1: Identify Critical Equipment
It is important that you identify all pieces of equipment that are critical to your core business. For each piece identified, you will need to ask the following questions:
- How would a breakdown of this equipment affect our business?
- Can we tolerate a disruption, and for how long?
- Who will provide the repairs?
Step 2: Practice Routine Maintenance
One of the biggest mistakes you can make as a business owner is to not properly care for and/or maintain your equipment. For each piece of equipment you own, there will be a manufacturer recommendation for routine maintenance – it is important that you follow these guidelines to avoid breakdowns:
- Maintain all equipment according to the manufacturer recommendation
- Document maintenance and monitor trends
- Know who to call for service and whether or not they have the means to quickly replace routine parts
Step 3: Plan For Equipment Breakdowns
Every business continuity plan should include equipment breakdown contingencies. Your number one consideration should be how to maintain regular business functions even when a breakdown occurs. In you plan you need to outline:
- Identify a reliable source of repair for each of the pieces of equipment we determined in Step 1
- Know where to obtain rental equipment
- Who is qualified to operate said equipment and will they need any special licenses or permits
- Review the plan with management and/or key personnel
- Test the plan to ensure you are sticking to the designated recovery timeframe
Equipment Breakdown Coverage
A business continuity plan alone will not protect you from the damages associated with a critical equipment breakdown. Equipment breakdown coverage, like that offered by Alpine Insurance & Financial, is a Property Insurance extension designed to protect your business from the potentially devastating effects of a breakdown. We not only help with repair costs, but we also cover you for extra expenses and lost income.
Contact Alpine Insurance & Financial for more information!
Photo – © Kadmy – Fotolia.com
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