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Equipment Insurance

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How much does equipment insurance cost?

The cost of equipment insurance in New Zealand typically averages between 0.3% to 1% of the value of the equipment insured per year. This cost can vary widely depending on the type of business, type of equipment, location and sum insured. 

What is the average cost of equipment insurance? 

In New Zealand, you can generally expect to pay between 0.3% to 1% of the value of equipment insured per year. That means to insure $100,000 of equipment, it would cost approximately $60 a month.

While this is a relatively accurate average, it’s important to remember that specific industries where equipment is at higher risk such as woodworkers or metal recyclers, the premiums will be higher.

Understanding equipment insurance cost factors

What influences the cost of equipment insurance? Several variables can impact the premium you’re quoted, lets look at the crucial factors.

The Value of Your Equipment

The total value of the equipment you want to insure plays a massive role in determining the premium. If you have expensive machinery or gadgets, you’re likely to pay more than someone with less costly gear. This is because the insurer would need to pay out more in the event of a claim on high-value items.

Type and Purpose of Equipment

Not all equipment is made equal. Machinery used in heavy-duty construction, for example, may attract a different premium than office computers or bakery ovens. The inherent risks associated with each equipment type, such as the likelihood of it being damaged, stolen, or causing an accident, influences the cost.

Location and Storage

Where your equipment is stored and used can also determine the insurance cost. Equipment kept in a secured facility with surveillance may attract a lower premium than gear stored in a more vulnerable, open space. Areas prone to natural disasters or theft may also see higher insurance costs.

Equipment Insurance Provides Cost-Effective Protection for Your Business

Overview of Equipment

Equipment, in this context, refers to tangible assets used in the operation of a business. This might include anything from office computers and furniture to construction machinery, bakery equipment, or even specialized tools.

How Equipment Insurance Helps Businesses:

Peace of Mind:

Knowing that your equipment is covered gives business owners peace of mind. It means that in the event of unforeseen damage, theft, or loss, they won’t have to bear the brunt of replacement or repair costs alone.

Smooth Business Operations:

With insurance in place, businesses can swiftly recover and resume operations even after a setback. Delays due to damaged or lost equipment can affect revenues, and insurance helps mitigate this downtime.

Financial Security:

Insurance ensures that the business doesn’t have to dip into its reserves or working capital. It helps protect against sudden financial drains that can arise due to equipment-related incidents.

It’s crucial to have equipment coverage if you

  • You operate in a high-risk environment
  • Expensive machinery is fundamental to your business
  • You can’t afford sudden replacement costs
  • Your business location is prone to theft

How can you save money on equipment insurance?

Even though equipment insurance is an essential part of running a business, it’s still possible to save money on it. Here are four effective ways to reduce the cost:

Use a Broker

Brokers like Gerrards have access to many insurance providers and markets that businesses do not have access to. This wide network allows us to compare many different offers and choose the one that gives you the best coverage for the least amount of money. Think of us as your secret weapon for getting the best equipment insurance deals.

Bundle Your Policies

Insurance providers often offer discounts if you purchase multiple policies from them. This method, known as bundling, could allow you to combine your equipment insurance with other types of business insurance, such as liability or vehicle insurance, and save money.

Increase Your Excess

The excess is the amount you agree to pay out-of-pocket before your insurance kicks in. By agreeing to a higher deductible, you can reduce your premium. However, it’s crucial to ensure you can afford the equipment insurance excess if you need to make a claim.

Maintain a Clean Claims Record

Taking diligent care of your equipment and reducing the likelihood of claims can potentially lower your premiums. Ensure your equipment is secured properly and that regular maintenance checks are conducted to prevent unnecessary damage.

Top industries that need equipment insurance

In New Zealand, equipment insurance can provide comprehensive and cost effective protection for many industries

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