Operating within the hospitality industry is all about service. Whether you run a busy city restaurant or a boutique B&B in the country, your aim is the same: to make your customer’s visit as enjoyable as possible. In order to do this, you rely on the functionality of numerous pieces of equipment, from heating to refrigeration and cooking amenities, as well as administrative devices such as computers and cash registers.
A typical hospitality business in the restaurant or accommodation sector uses a range of critical machinery and electronic equipment on a daily basis. Depending on your business and use of each, it’s important to source the appropriate cover to protect your assets.
Breeze Underwriting offers cover for both Machinery Breakdown and Electronic Equipment. In order to fully protect yourself, it’s imperative to distinguish the differences between these policies in order to choose the cover most appropriate for your business. Businesses can operate with one or the other policy, or use both together to ensure optimum coverage.
The following descriptions may help give you a better understanding of the policies:
Although similar, Machinery Breakdown and Electronic Equipment policies have specific differences that set them apart. The main difference is what they cover the terms ‘Machinery’ and ‘Electronic Equipment’ refer to two different types of apparatus.
Machinery: Covers larger electrical and mechanical items such as ovens, deep fryers, air conditioners and cleaning equipment as well as their integral parts.
Electronic Equipment: Refers to electrical appliances including televisions, computers, and Point of Sale systems. The policy also extends to cover software and electronic data, and any monetary costs arising from a loss of this data.
Electronic Equipment and Machinery Breakdown cover do go hand in hand, but remember that what’s included in each policy is inherently different. If you do decide to operate with one policy and not the other, it’s important to fully understand exactly what’s covered and what’s not.
Take a simple cash register system for example. If your register breaks down, you would need a machinery breakdown policy to cover the cost of repair or replacement for the item. However, if your cash register is linked to your POS system, this breakdown can also cause a loss of data. To reinstate your accounting records, you will only be covered if you also have Electronic Equipment cover.
In addition, it’s important to keep in mind that both policies cover breakdown and accidental damage of your assets, but not damage as a result of fire or environmental factors, or loss of equipment through theft. Furthermore, any software viruses or disruptive programming that cause a fault with your system or a loss of data are not covered within a Machinery Breakdown or Electronic Equipment policy. These risks can be covered under other policies such as Property and Cyber Insurance Packages.
We know that it can be difficult to understand the specifics of a policy. Our specialist underwriters are happy to discuss with you the specific risks and insurance needs of your business, in order to source the most appropriate cover
Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.
The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.