Don’t let your dream purchase go up in flames

What would happen if your new digital retinal camera suddenly stopped working? Problems with equipment such as mechanical failures are not uncommon. While 72 per cent of small- to medium-size business owners have heard of equipment breakdown insurance only 21 per cent have it.¹

Equipment breakdown insurance provides essential protection against mechanical failures in equipment that is not usually included in general policies. For example, it insures against damage that is excluded from the warranty such as that caused by an employee negligently overloading an electric circuit.

It may be that you come to work one day to find that your new fundus camera is missing.

Any item of value in your practice can potentially be a target for burglars so it is important to ensure that you have sufficient contents insurance and that you aren’t underinsured.

What would you do if your new keratometer were to catch on fire?

Fires occur more frequently than you think. It is stressful to watch your equipment go up in flames so it can be reassuring to know that your insurer is there to help you.

Unexpected events can often occur at inconvenient times so it is essential that your insurance company can be easily contactable at any time. With Guild’s 24/7 emergency claims line, you can receive support whenever you need it.

Some assessors merely aim to minimise losses for the insurer, while others help you rebuild as well as offer resources that will help you make a full recovery. You want to know that your insurer is there for you at the time of a claim before it is too late.

Are you underinsured?

When purchasing new equipment it is important to inform your insurer that the value of your practice contents has increased. If you fail to do so, with many insurance policies you are at risk of underinsurance and of receiving an insufficient pay-out to account for the loss. Even with a partial loss, these insurers may apply underinsurance or average provisions whereby you could receive less than a full pay-out. This is not the case with Guild Insurance, as we provide Full Replacement Cost to avoid leaving you out of pocket.

Partial loss scenario

Assessed cost to rebuild: $450,000

Amount you insured: $325,000 (less than 80 per cent of $450,000)

Cost of partial damage: $100,000

Insurance policy with average clause

Insurance pay-out after average clause is applied: $90,278

Out of pocket:  $9,722

With Guild’s full Replacement Cost Cover:

Insurance payout: $100,000

Out of pocket: $0

With full Replacement Cost cover, you are always covered for the full cost of the damage, even if you have inadvertently underinsured your building and contents.

Consider all the possibilities of what could happen to your equipment and ensure you have sufficient insurance cover from the start. If your dream purchase does go up in flames at least you will know that your insurer will take care of you.

For more information on insuring your ophthalmic equipment, contact a Guild representative on 1800 810 213.

1.         Cameron R. The Australian Small Business Market for Financial Services, Australia; 2006.