What proactive steps can brokers encourage clients to take when managing equipment risk?

In this video, Sovereign Insurance’s expert provides top risk management tips to guide your next client conversation on equipment breakdown.

Transcript:

Hi, I’m Allen Babista, and I specialize in helping Canadian businesses stay resilient by protecting their critical systems from equipment breakdown.

Today, I’m sharing a few tips that can help you guide your clients in managing their risk and protecting what powers their operations.

Tip 1: Conduct a risk assessment and go deeper than usual. It’s important to evaluate all critical systems, HVAC, electrical, automation, and any digitally controlled equipment. Don’t stop there. Look at how environmental exposures might create new vulnerabilities.

Extreme heat, cold, or humidity can all impact equipment performance.

Tip 2. Maintenance is your first line of defense. Encourage clients to stay on top of inspections and servicing. In fact, increasing the frequency of maintenance could be one of the smartest investments they make because preventing a breakdown costs far less than repairing one.

Tip 3. Keep coverage aligned with growth. As businesses expand or add new systems, it’s essential to review and update their coverage. Policy that worked five years ago may not offer enough protection today.

Tip 4. Make sure there’s a solid business continuity plan. When breakdowns happen, and they will, a continuity plan ensures the business can keep moving. It’s not just about equipment. It’s about minimizing downtime and financial impact.

And finally, tip 5. Don’t ignore climate and environmental risks. We’re seeing risks today that weren’t even on the radar a few years ago. Ask your clients.

How would extreme weather impact our electrical systems, cooling equipment, or production lines? Planning for these what ifs is no longer optional. Talk to your Sovereign underwriter for more tools and tips. Thanks for watching.

And remember, the right advice can make all the difference when it comes to protecting your clients from unexpected breakdowns.

MORE EXPERT ADVICE: From extreme weather to automation gaps, Sovereign Insurance helps brokers tackle modern equipment breakdown risks. Learn more.

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