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Machinery Loss of Use Coverage

21
Aug

If have an insurance claim with any of your machinery you will likely need to rent a replacement while the damaged one is being repaired or replaced. This can be very costly for you unless your insurance policy covers the expense.

The Machinery Loss of Use Coverage will pay the rental cost of the replacement machinery if the damage to your equipment is covered by the insurance policy. Also you have to explain that you need the replacement. It will not pay if you simply experience a breakdown and the coverage will not pay the full cost of custom work service but it will very likely pay a good portion.

In all cases the rental unit or custom work has to be approved by the adjuster.

In a number of situations we have seen the Loss of Use claims add up to be more than the machinery claim itself.

You also need to make sure you have enough coverage. It used to be that $2,000 per day rental coverage was enough but today machinery rental rates are higher. Daily rentals can now exceed $3,000.

For a very minimal difference in cost you should consider insuring at the higher level. Be sure to seek advice and purchase insurance from those who understand your business!