Protect your business from a power surge

Is your business equipment protected from the damage an electrical power surge could cause? Power surges happen more often than you may think and can severely damage your equipment and disrupt your business. 

Cathy Calhoun, owner of Calhoun Jewelers in Royersford, Penn., and a member of Jewelers Mutual’s Board of Directors, experienced a significant loss when a power surge caused damage to several pieces of machinery and electronic equipment in her jewelry store. According to Cathy, this incident caused an incredible disruption to her life and operations. “I cannot even focus on the business of selling jewelry now, even a full month after the initial incident,” she said.

According to Jewelers Mutual’s claim statistics, jewelers have reported a record number of equipment breakdown claims in 2009. Not only has the frequency increased, but the average cost per claim has also increased. The majority of claims are the result of electrical power surges damaging equipment.

If your computer system is damaged, your system along with the Point-of-Sale software can easily exceed $10,000. Wax model/molding machines can cost $30,000 or more. Laser welders cost in excess of $25,000. Microscopes can cost thousands of dollars too. Many other electronic tools and equipment can also be damaged and add up to a very substantial loss.

The use of relatively inexpensive Surge Protection Devices (SPD) could prevent most of these claims. SPDs are designed to absorb and divert high-current surges to a ground, bypassing and protecting equipment. You should install them on each critical and costly piece of machinery or electronic equipment. The cost to properly equip your facility with appropriate surge protection will often be less than the deductible on your insurance policy.

Surge Protection Panels cost approximately $500 and should be installed near the main circuit panel where the power enters the facility. Surge Protection Receptacles or Surge Protection Power Strips can typically be purchased for as little as $50. You simply plug equipment into these devices.

Surge protection is an effective and inexpensive way you can potentially eliminate very costly equipment damage and the related down time associated with a power surge incident. 

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.