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Equipment Breakdown Insurance

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Equipment Breakdown Insurance Provided By Our Agency

Commercial property insurance protects your business against equipment and machinery being damaged by fire, flood, and other external risks. But, it doesn't cover risks such as mechanical failure, breakdown, wiring problems, or short circuits. Such breakdowns can bring your business to a grinding halt as you deal with the cost and time spent repairing or replacing.

What is Equipment Breakdown Insurance?

An Equipment breakdown insurance policy can cover all sorts of equipment used in your business–such as elevators or heating–rather than just the machinery your business uses while manufacturing. Policies usually cover computer equipment but will only pay for physical hardware damage rather than software failure or malware.

It's worth noting that, while manufacturer warranties may pay for repair costs or provide replacements in some circumstances, they usually aren't as extensive as systems breakdown insurance.

For example, the warranty might not cover accidental damage from human error, such as overloading electrical circuits. But, Equipment breakdown insurance will cover this type of incident.

What does Equipment Breakdown Insurance cover?

Equipment Breakdown Insurance helps cover:

  • The cost to repair or replace damaged equipment, including time and labor.
  • Lost income
  • Spoiled inventory
  • Necessary expenses incurred during the restoration period.

Categories of equipment covered under Equipment Breakdown Insurance

Mechanical includes motors, engines, generators, elevators, water pumps, and specialized production and manufacturing equipment.

Electrical, which includes transformers, electrical panels, and cables.

Computers and communications include phones, voice mail, security, and fire alarm systems.

Air conditioners and refrigeration systems

Boilers & pressure equipment

Examples of Equipment Breakdown Insurance coverages

Equipment breakdown insurance is smart to have – even if you don't own your building, and especially if the success of your business is dependent upon properly-functioning equipment owned and operated by a key supplier, such as a local power company.

For example, if you own a pizza shop that depends on online orders and walk-in customers, your business will suffer if the power goes out due to a power surge. A power outage could result in loss of heat or air, the inability to process online orders, and the inability to prepare, cook, serve and sell food. And if the power is out long enough, your food inventory could spoil.

In this example, equipment breakdown insurance may help pay for:

  • Business income you lost while the power was out.
  • The cost to repair your walk-in refrigerator and replace a computer damaged by a power surge that occurred when the electricity was restored.
  • Costs associated with the time and labor to repair and replace your damaged equipment.
  • The cost to replace any spoiled food.

If your business could suffer from an equipment breakdown, this optional coverage may be a good choice. Our team can help you understand your policy's coverage and whether your business may benefit from additional protections such as equipment breakdown coverage.

Already have Equipment Breakdown Insurance? Switching is easy

It might be time to switch insurers whenever the service that your existing insurer provides doesn’t meet your needs. For example, if you have a poor claims experience or an unexplained rate increase, it might be time to consider other options

If you cancel a previous policy before a new policy is effective, you could run into some serious financial problems.

Contact us today to help you with multiple options to choose from.
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