Boiler Inspection

Understanding Equipment Breakdown Coverage

No matter what type of business you own, you rely on equipment to some degree to deliver products and/or services to your customers. Whether it’s the air conditioning unit or your computer network, an equipment breakdown could negatively impact your operation–and ultimately your bottom line.

Equipment breakdown insurance helps keep your out-of-pocket expense to a minimum when your equipment bites the dust. This optional coverage can be added to your commercial property insurance policy.

Types of Equipment Covered

If an accident damages your business equipment or it simply breaks down, equipment breakdown insurance can help cover the cost to replace or repair it. This coverage applies to any equipment you use to keep your business running including:

  • Mechanical and electrical equipment
  • Computers and communication equipment
  • Air conditioning and refrigeration systems
  • Boilers and pressure equipment
  • Security and alarm systems

If you operate a food business, coverage may also help replace food spoiled because of an equipment breakdown.

Covered Incidents

There are many reasons your business equipment could become inoperable and force you to have to repair or replace it. Depending on the policy you select, covered incident may include:

  • Operator error
  • Power surges
  • Short circuits
  • Mechanical breakdowns

To figure out the appropriate amounts and limits of equipment breakdown insurance that is right for your business, you should factor in more than just the cost of replacing the equipment. Also consider whether the breakdown could cause damage to your facility or cause you to shut your business down for several hours or several days.

Talk to your insurance advisor about the various scenarios that could result if your equipment breaks down to ensure that you select a policy that protects your business no matter what situation occurs.



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