Contract Aggregation

Budget Guard EMI

Budget Guard EMI is an innovative equipment maintenance insurance program that is directly underwritten by a highly rated insurance company and administered by Budget Guard LLC.

Budget Guard EMI was designed with one clear objective in mind. We want to provide the exact level of coverage you desire – for the best possible price. Original equipment manufacturers (OEMs) have long enjoyed little or no competition, allowing them to command healthy profit margins on their service contracts.

Budget Guard EMI significantly reduces your maintenance costs by consolidating multiple expensive OEM service contracts with their multiple vendors and varied effective dates into a single comprehensive equipment maintenance insurance policy. Instead of paying for service that you might not need, with Budget Guard EMI you only pay a fraction of the cost upfront and the rest only when your equipment needs service.

How Budget Guard EMI Works

The Budget Guard EMI policy is structured as an aggregate deductible program (ADP). The ADP is a system in which your organization retains and handles the anticipated preventive and corrective (repair) maintenance costs within a predetermined budget, and transfers the risk above that threshold, leaving you with a cap on anticipated maintenance costs. And because you control the maintenance funds, you retain any unspent maintenance dollars at the end of the policy term. Typical savings are between 18% and 22% versus your current annual service contract spend.

For example, let’s say your current annual service contract spend is $1M. Under Budget Guard EMI you would pay a premium up front, let’s say $200K, and then you have an aggregate deductible that you retain, let’s say $650K. This means that your new maximum program cost is $850K, a guaranteed initial savings of $150K or 20%!

Once coverage begins you utilize the $650K aggregate deductible that you retain to pay for maintenance services as they are performed on covered equipment by the vendors that you choose. If your actual maintenance costs stay under the $650K aggregate deductible, you get to keep the difference, increasing your overall savings. For example, let’s say your actual maintenance costs are $525K. That means there is a surplus balance of $125K, bringing your total savings to $275K or 30% versus your prior service contract spend!
Conversely, if your actual maintenance costs exceed the retained aggregate deductible amount, the Budget Guard EMI policy covers the excess amount per the terms and conditions of the policy. For example, let’s say your actual maintenance costs are $725K. That means you are reimbursed an excess amount of $75K, capping your maintenance costs at the $650K aggregate deductible amount!

Long Term Savings

While equipment acquisition costs and high-profit margin goals strongly influence OEM service contract prices, the Budget Guard EMI premium and aggregate deductible are based on anticipated PM and repair costs, and the financial risk of each covered asset is spread across the covered inventory. We strive to keep your costs low year to year by working closely with you to manage costs in a manner that never compromises service quality or equipment uptime.

Equipment Covered

The Budget Guard EMI policy can cover a wide range of electronic equipment asset classes including analytical, biomedical, communications, clinical laboratory, diagnostic imaging, general office, information technology, research laboratory, radiation therapy, security, surgical, and more.

Certain models may not be eligible for coverage due to the availability of parts or service providers. Contact us with any questions that you have about equipment eligibility.

Certain models may not be eligible for coverage due to the availability of parts or service providers. Contact us with any questions that you have about equipment eligibility.

Service Delivery

Equipment service is performed by the vendors you choose, and coverage can include the costs associated with parts, labor, travel, emergency repair, and preventative maintenance. As an added value, all labor is covered 24-hours per day during weekdays with options for weekend and holiday coverage as well.

During program implementation we work with your internal staff to develop a service delivery plan for each covered equipment asset or asset class. This includes identifying the primary service and parts providers and alternatives. We then develop internal procedures so that your end users know how to initiate and report service events.

When your equipment requires service, your staff simply contacts the predetermined vendor to schedule service. The vendor performs the PM or repair and issues a field service report (FSR) and invoices for the service event. The FSR and related invoices are reported to us using a process jointly developed during program implementation. Finally, the covered amount of the service event is applied to the aggregate deductible.

Managed Maintenance Program (MMP)

Looking to outsource vendor management? No problem! Our MMP will simplify administration by converting all service calls and purchase orders into one purchase order, one invoice, and one completely accountable program manager.

The underlying Budget Guard EMI policy is still structured as an aggregate deductible program with the same broad coverage. However, with the MMP, you transfer the retained aggregate deductible amount to us, and we dispatch and pay the vendors directly, on your behalf. The administrative fee associated with this service may be offset by the reduction of your internal administration costs.

This unified approach will improve service quality while saving you time, money, and administrative resources. When your equipment requires service, your staff simply contacts us using procedures established during program implementation and we handle the rest! 

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Transitioning to Budget Guard EMI

Your transition to Budget Guard EMI is easy and cost-effective. Your Budget Guard EMI policy can begin on the exact date existing service contracts expire, helping you avoid the unnecessary expense of overlapping coverage.

We also help you deal with variable service contract and warranty expiration dates by allowing you to add equipment at pro rata costs throughout the policy term, ensuring that your transition to Budget Guard EMI is seamless and pain free. In this manner, maintenance for all categories of equipment assets can be transferred to Budget Guard EMI over time, without skipping a beat.

Program Comparison Checklist

Budget Guard EMI Benefits Extend Beyond Equipment Maintenance

17% – 22% average initial cost savings range and additional savings up to 30% on average based on program performance.

Transparent and unbiased management reports

Freedom to use vendor of your choice

Expanded standard coverage hours

Fixed amount maintenance budget backed by the financial strength of a highly rated insurance company.

The following chart shows the differences between typical service contracts and Budget Guard EMI – you will quickly see the many advantages of Budget Guard EMI

Captive Equipment Maintenance Insurance (CEMI)

Does your organization have a captive insurance company? If so, you may be able to further reduce costs by utilizing your captive as a vehicle to finance and administer maintenance and repair costs.  

Our CEMI a great self-insuring opportunity for what is a large operating expense for most organizations and is an attractive line to diversify a captive insurance company’s risk. 

However, to establish CEMI you must develop an accurate PM and repair budget and management program. Working with your captive insurance company’s administrator, Budget Guard can design and oversee the implementation of a CEMI for you.

Get Started

Getting started on a program is simple and easy. The first step in improving your equipment management process is by gathering the appropriate information. We will assist you through each step of the process.

Gather Service Contracts

Gather copies of your current, recently expired and proposed service contracts.
If not already in electronic format, scan or convert each document into a pdf or image file (preferably pdf).

Don’t have a clean contract repository? We understand. We can conduct a survey to gather the service contracts for you.

Review Contracts

We’ll review each contract and contact you promptly if additional information is required. Once we’ve gathered the necessary information, you’ll receive a preliminary proposal that outlines your potential cost savings and a provisional plan to deliver the technical and administrative support necessary for a successful program.

Upload Contracts

You’ll receive a link from Box, our secure cloud technology partner. This eliminates large email attachments and the security issues they create.
Simply upload your contract files to the secure folder established for you.

Review Contracts

We’ll review each contract and contact you promptly if additional information is required. Once we’ve gathered the necessary information, you’ll receive a preliminary proposal that outlines your potential cost savings and a provisional plan to deliver the technical and administrative support necessary for a successful program.

Upload Contracts

You’ll receive a link from Box, our secure cloud technology partner. This eliminates large email attachments and the security issues they create.
Simply upload your contract files to the secure folder established for you.

Gather Service Contracts

Gather copies of your current, recently expired and proposed service contracts.
If not already in electronic format, scan or convert each document into a pdf or image file (preferably pdf).

Don’t have a clean contract repository? We understand. We can conduct a survey to gather the service contracts for you. 

Site Visit

An on-site (or virtual if preferred) meeting is scheduled to discuss requirements, coverage gaps, and alternative service arrangements with key managers and staff. Through an interview process, we attempt to gain insight into the general satisfaction level with the current service providers and determine the preferred method of service delivery. We also want to determine your short and long-term objectives and which of our programs best meets your needs.

Gather Service Contracts

Gather copies of your current, recently expired and proposed service contracts.
If not already in electronic format, scan or convert each document into a pdf or image file (preferably pdf).

Don’t have a clean contract repository? We understand. We can conduct a survey to gather the service contracts for you. 

Review Contracts

We’ll review each contract and contact you promptly if additional information is required. Once we’ve gathered the necessary information, you’ll receive a preliminary proposal that outlines your potential cost savings and a provisional plan to deliver the technical and administrative support necessary for a successful program.

Site Visit

An on-site (or virtual if preferred) meeting is scheduled to discuss requirements, coverage gaps, and alternative service arrangements with key managers and staff. Through an interview process, we attempt to gain insight into the general satisfaction level with the current service providers and determine the preferred method of service delivery. We also want to determine your short and long-term objectives and which of our programs best meets your needs.

Final Proposal

A final proposal is presented with our findings based on our analysis and our plan to manage your equipment support through an appropriate blend of mechanisms. The proposal provides a comparative cost savings analysis so you can easily measure the value the program is bringing vs. the annual cost of your existing contracts and vendor arrangements.
That’s it! The typical turnaround time is 2 to 4 weeks, depending on the number of equipment assets targeted and the number of facilities that are included. Smaller surveys can be turned around in less than 2 weeks.