Comprehensive Condition Monitoring Programs Lower Insurance

Comprehensive Condition Monitoring Programs Lower Insurance

Most businesses carry insurance coverage to repay the cost of damage to assets like buildings and machinery. Companies also can have coverage for the loss of production due to catastrophic events, such as fires or machinery breakdowns. Rates have been increasing but when a company has an equipment condition quality monitoring program, it can positively effect insurance coverage.

Studies have shown that as much as 75% of losses reported for a given year were the result of a failure by the insureds to utilize comprehensive condition monitoring programs. IBT’s Industrial Maintenance Technologies (IMT) Division delivers a full menu of these preventive, predictive and performance monitoring services to both light and heavy industry.

Although there is more to a complete asset management system than just condition monitoring, included technologies such as vibration analysis, infrared scanning, precision balancing, precision alignment and lubrication play an important role in helping a company maximize uptime and minimize the likelihood of unplanned, catastrophic downtime.

Business interruption insurance does not normally cover losses caused by poor maintenance or normal wear and tear. This makes it vitally important to know the condition of your equipment and to maintain it properly.

Business interruption policies are written so the customer incurs initial losses of X amount of dollars and Y number of days of lost production before insurance payments begin. The same condition monitoring program that insurance companies use will reduce the cost of your maintenance, regardless of insurance claims.

The existence of a condition monitoring program is not enough by itself; it must be staffed by knowledgeable, experienced and certified personnel.

Add a partnership with IMT and you can have it both ways: insurance against loss and a program that reduces the likelihood of needing to make an insurance claim. To learn more about how IMT can help you, contact us.

 

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