Managing General Agent  

New Products & Underwriting Updates


Published Date : 17-Mar-2009
Description :

Costly Equipment Breakdowns are Never Convenient Profit Margins are Thin, Competition Fierce for Convenience Stores Worried about mounting losses, a convenience store owner waited five anxious weeks to get refrigeration equipment repaired. Compressors on coolers and freezers broke down and parts were not readily available. Without milk, juice and other cold products to sell, customers were taking their business to competitors. HSB PAYS $60,000 HSB paid approximately $60,000 under the store's equipment breakdown policy, including $41,447 for lost business income. Like most convenience stores, the location had no backup equipment and little additional cold storage space. LOST SALES, LESS PROFIT How many stores could afford a similar loss? With almost 150,000 convenience stores in the United States, the competition is fierce and profit margins are thin. Unexpected repairs and lost sales can really hurt without equipment breakdown insurance. STORES DEPEND ON EQUIPMENT Convenience stores rely on many types of equipment. In addition to refrigeration units such as reach-in coolers and display cases, these locations operate air conditioning systems, boilers and other heating equipment. ELECTRICAL EXPOSURES Other equipment includes coffee makers, microwaves, electronic cash registers, bar code scanners and credit card readers. Many stores have computerized inventory systems, ATM and copy machines, and security and surveillance systems. EXAMPLES OF PAID LOSSES This equipment gets hard use and is vulnerable to mechanical breakdowns and damage from electrical surges and short circuits. With so much food for sale, the risk of spoilage is high. HSB HAS BROAD COVERAGE HSB's equipment breakdown coverage can pay for repairs, lost business income, spoiled products and more. That includes extra expenses such as renting temporary equipment and expedited repairs. HSB provides jurisdictional inspections of boilers at no extra charge where required by law.

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