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Equipment breakdown coverage

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.

What is equipment breakdown coverage?

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.

How do you get equipment breakdown insurance?

Discuss your options for purchasing equipment breakdown insurance with a licensed Insureon agent. The coverage is readily available as an endorsement to commercial property insurance, a business owner’s policy, or a commercial package policy.

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What types of equipment does this coverage protect?

Equipment breakdown coverage is designed to protect various types of equipment, including:

  • Computers and telephone equipment
  • Mechanical system components
  • Manufacturing equipment
  • Refrigeration devices
  • Heating and ventilation systems
  • Elevators and escalators
  • Security systems
  • Retail point-of-sale devices

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.

Is equipment breakdown coverage the same as boiler and machinery insurance?

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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Updated: February 2, 2023
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