Could equipment failure leave you unable to trade?

When you think about the kind of things that can interrupt your business operation, you probably imagine major events like fires and floods.

But not everything that could bring your business to a grinding halt is the kind of event that makes the news. Often, it’s something much closer to home — a piece of equipment you rely on to trade goes kaput.

So, what would you do then? What’s your Plan B if a piece of equipment fails and stops you being able to operate as normal?

Capricorn Risk Services’ New South Wales and Australian Capital Territory Sales Manager Rob Sedkey said while more than half of Members have business interruption protection, only 30% have the kind of protection that covers them in the event of equipment failure.

“You may have seen this referred to as machinery breakdown or electronic equipment breakdown cover, at Capricorn Mutual we simply refer to engineering,” Rob said.

“It doesn’t just relate to you being an engineer, it relates to any machinery, or electronic component." Rob said while business protection for equipment failure doesn’t cover for “wear and tear”, it is an incredibly valuable form of protection against some major risks.

“Say you’re a smash repairer and you’ve got compressors, welders, spray booths and other electronic equipment,” Rob said. “It’s worth a lot of money. Some spray booths can be worth around $100,000 or even up to $200,000. When you add up all the electronic equipment in your workshop it can be worth well above $20,000 and upwards of $50,000 or more.

“What happens if there’s a power surge or a major malfunction due to an unforeseen circumstance? You could be out of pocket tens of thousands of dollars.”

Rob said business interruption protection for equipment breakdown includes not just traditional pieces of machinery but also electronic equipment like laptops, air conditioners and even CCTV cameras.

“We had one Member who had a really large workshop and, therefore, really quite an intricate CCTV system they’d spent a lot of money on,” Rob said. “Believe it or not, a possum climbed into one of the nearby substations, so the power company had to turn off the power to fix things.

“When they turned it back on it created a major surge to many businesses in the area — and we’re talking major voltage — that was so powerful the kill switches in the workshop couldn’t stop it. It fried about seven cameras.”

Rob said the claim amount to replace the CCTV cameras came to about $26,000 and was covered by the Member’s ‘Engineering section’.

Business interruption can happen in ways you don’t expect and couldn’t foresee — like one poor possum making a bad decision. To avoid the heartache of business interruption, Rob recommends creating a checklist of all the machinery and electronic equipment in your workshop, or associated with your business, and then calling your Risk Account Manager to make sure you are protected.

Call your Capricorn Risk Services Risk Account Manager today.

Contact Capricorn Risk Services 1800 007 022 I info@capricornrisk.com I capricorn.coop/risk

GET THE MOST OUT OF YOUR CAPRICORN MEMBERSHIP IN 2022

You’re a Capricorn Member, which is awesome. You’re putting a lot of your purchases on your Capricorn Trade Account and reaping the rewards. But it could be even better. Make sure you’re getting the most out of your membership by checking out the tips below.

Check out other sections of the Purple Pages

When we say, ‘if it’s in your business, it’s in the Purple Pages’ we aren’t kidding. Check out other sections of the Purple Pages to find everything you need to run your business and make it easier by putting it all on one statement.

Make sure you’re well protected with Capricorn Risk Services^

Capricorn Risk is your one stop shop for protection and insurance from people in the industry. Not only do you get top level protection products, and a dedicated Risk Account Manager, but you also earn those precious Rewards points.

Making a big purchase? Check out CAP ezifinance~

CAP ezi-finance provides easy and convenient finance options for Members looking to purchase new equipment. For anything over $2,500 and with repayment terms over 60 months, CAP ezi-finance is a great way for Members to grow their business with new equipment.

Contribute to the future of the industry by nominating your apprentices

The skills shortage is real, and we’ve been talking about ways to help close the gaps for a little while now. One of the best ways to retain the automotive leaders of tomorrow is to nominate your apprentices in the Capricorn Rising Stars competition.

There is more than $20,000 in cash and prizes to be shared amongst the overall winner, the top 5 finalists and the workshops that nominated them*.

Simplify your business fuel payments3

Capricorn Member's and their employees can enjoy the convenience and savings offered by the Capricorn Fuel Card and earn valuable rewards points with every fuel purchase made.

Book your next holiday with Capricorn Travel1

Did you know Capricorn has an ATAS accredited, award winning travel agency? We may not be travelling far at the moment, but if you are looking for a little bit of support organising your next local get-away, have a chat to the Capricorn Travel team. Not only do you get a fantastic holiday, but you can earn and redeem your Rewards points too!

Once you’ve earned all those Reward points – treat yourself2

So you’ve been through the list, you’ve found some new Preferred Suppliers, you’ve joined Capricorn Risk Services, and you’ve booked a holiday. You will likely have a nice little nest egg of Capricorn Rewards Points saved up. Log into your myCAP Portal to check out the amazing range of options you can redeem your points on. From BBQs to gifts cards, and even entertainment, there’s something for everyone at Capricorn Rewards.

*For more information visit capricorn.coop/tc and click on ‘Capricorn Rising Stars 2022 Terms and Conditions’. ^Products sold through Capricorn Risk Services Pty Ltd (ABN 93 111 632 789) are: (i) discretionary risk protection products issued by Capricorn Mutual Ltd; and (ii) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd. Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you. Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative (No. 460893) of Capricorn Mutual Ltd (AFSL 230038) and Capricorn Insurance Services Pty Ltd (AFSL 435197). ~Capricorn Finance offers business equipment finance through Capricorn Society Limited (ACN 008 347 313) and brokers business finance through Capricorn Society Financial Services Pty Ltd (ACN 129 134 667). Fees and charges, terms and conditions, and lending criteria apply. 1Capricorn Travel Australia Pty Ltd / ACN 008 926 645 / ATAS Accreditation No: A10552 2Participation in the Capricorn Rewards Program is subject to the Capricorn Rewards Program Terms and Conditions which can be found via the Capricorn website. 3Applications and use of the Capricorn WEX Motorpass Fuel Card are subject to Capricorn Motorpass Card – Terms and Conditions which can be found at https://www.capricorn.coop/Terms_Conditions.