A system breakdown can refer to an event during which a system that you run internally as part of your business or an external system like the main power grid stops working properly. Either way, a system malfunction can mean that your business is stopped, or at least seriously impeded, until the system is up and running again.

One way to protect yourself financially against the impact of something like this is to add system breakdown coverage and/or business interruption insurance to your ME business insurance package.

Internally, your IT, electricity, heating and cooling, and manufacturing lines are going to be the most likely systems that may cause problems. Maintain a good relationship with your IT provider and make sure you have regular cleanouts of your internal files so that you don’t overload your network, which can cause a system to slow down or crash.

Keep an eye on the load on your electricity system. Check wires and cables and don’t carry outdated or faulty appliances that could trip the system. Install power surge arrestors to protect appliances and computers from damage if there is a main grid power surge. Regular maintenance of heating and cooling systems will help ensure smooth and economical running and they will be less likely to break down. Manufacturing lines can be complex assemblages, so you need to pay attention to regular maintenance and safety checks.

Exterior breakdowns like local power outages are not something you can manage, except in the aftermath, which is why business interruption coverage from your ME business insurance is important – it can help you continue to meet financial obligations while your productivity is down.