Equipment breakdown coverage is a form of commercial insurance that provides funds to repair or replace damaged machinery or equipment that has suffered a mechanical or electrical failure.
Equipment breakdown coverage is insurance that protects your company’s computers, electrical systems, production machinery, and other equipment from sudden and accidental malfunctions. It’s designed to cover losses such as short circuits, loss of air pressure or vacuum, or power surges that commercial property insurance typically excludes.
Equipment breakdown coverage is designed to protect various types of equipment, including:
This coverage doesn’t require that the equipment breakdown resulted from a covered event in a property insurance policy, such as a fire. Coverage can kick in after an equipment malfunction.
Equipment breakdown coverage is a newer form of coverage than boiler and machinery insurance, which was introduced when steam boilers were a major source of industrial power. Today, businesses rely on electricity to run a much broader range of equipment, which equipment breakdown coverage is designed to protect.
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