If have an insured loss to 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 you decide to transfer the risk to the insurance company.
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. It will not pay if you simply experience a breakdown. You do have to explain that the work you want to do cannot wait. The coverage will not pay the full cost of custom work service but we have seen a good portion of it paid (minus fuel and labor).
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.
The other consideration is how much coverage to buy. It used to be that $2,000 per day/$20,000 max. rental coverage was enough but today some of the machinery rental rates are higher. Daily rentals can now exceed $3,000.
For a very minimal difference in annual premium cost you may want to consider the higher level of coverage. Be sure to seek advice and purchase insurance from those who understand your business!