According to Jewelers Mutual Insurance Company, jewelers have reported a record number of equipment breakdown claims in 2009.
Not only have claims for equipment breakdowns increased, but the average cost per claim has also grown. The majority of claims are the result of electrical power surges that damage equipment.
If a computer system is damaged, the cost including Point-of-Sale software, could easily exceed $10,000. Wax model/molding machines can cost $30,000 or more. Laser welders cost in excess of $25,000. Even microscope losses can be in the thousands. As a jeweler, these are just a few of the electronic tools and equipment that are vulnerable to damage. Failure of these tools can add up to very substantial losses.
The use of relatively inexpensive Surge Protection Devices (SPDs) could prevent most of these claims. SPDs are designed to absorb and divert high-current surges to a ground, bypassing and protecting equipment. SPDs should be installed on each critical and costly piece of machinery or electronic equipment. The total cost to properly equip a facility with appropriate surge protection will often be less than the deductible on an insurance policy.
Typically, Surge Protection Receptacles or Surge Protection Power Strips can be purchased for as little as $50. To use them, simply plug equipment into these devices. Surge Protection Panels should be installed near the main circuit panel where the power enters the facility. These cost approximately $500.
For more information about protecting your facility and equipment from electrical power surges, contact a reputable electrical contractor in your area or the Jewelers Mutual Loss Prevention Department at (800) 558-6411.