How to Sell Equipment Breakdown

The following messages and closing techniques are designed to make selling Equipment Breakdown coverage as fast and easy as quoting it.  We suggest that you follow a simple three step process: 1.) Offer and quote.  2.) Answer questions. 3.) Close.  Keep your message short and simple using only the essential facts.  Insureds rely on your professional judgment to make decisions so confidently assert the need for the coverage.  Adapt these suggestions to whatever fits your own style and proves effective.

Offer and Quote

“In reviewing your insurance program we noted that you don’t have Equipment Breakdown coverage.  This coverage pays for the cost to repair or replace business equipment, machinery or technology that breaks down due to causes such as power surges, short circuits and mechanical breakdown.  It can also cover business income losses that occur when a breakdown interrupts your operations.”

“We think this coverage is pretty important because the cost of a breakdown can be significant.
The premium is $_______.  Is it okay if we add it to your policy?”

Questions and Answers

Costs too much

If you compare the cost of the coverage to the cost of an uncovered equipment breakdown loss you’ll see that it could cost thousands or more. Businesses like yours that had equipment breakdown losses were glad they had the coverage, take this one for example — (cite loss example from HSB IQ equipment exposures guide.)

I don’t have a boiler / don’t have a lot of equipment

Equipment Breakdown insurance covers many types of equipment. (Refer to Five Easy Pieces for types of covered equipment, exposures and loss examples.)

• Computers and Communications Equipment
• Electrical Distribution Systems
• Air Conditioning and Refrigeration Systems
• Heating and Hot Water Systems
• Mechanical equipment

I don’t think I need the coverage

That’s okay – so long as you understand the risks you’re self-insuring. For instance:

• If you had no electrical power, could you stay open? How much income would you lose?
• Would you be able to service customers if your phones or computers were damaged by a power surge? What would it cost to replace these systems?
• What’s the value of your air conditioning, refrigeration, freezers or ice machines?
• Do you rely on heat and hot water in your business? What would happen if you lost service?

I didn’t have it before, why do I need it now?

Equipment has changed. So have the risks. Sensitive computer technology is now in most equipment making it more vulnerable to damage from power surges and other equipment threats.
Because of these increased risks and the reliance most businesses have on equipment to generate income, we think nowadays the coverage is as important as the others you have.