Equipment Breakdown Insurance

Protects businesses from losses caused by mechanical and electrical system failures

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What is Equipment Breakdown Coverage?

Equipment Breakdown, sometimes referred to as Boiler & Machinery coverage protects businesses from losses caused by mechanical and electrical system failures or breakdowns.

Many businesses rely on various mechanical, electrical, and computer systems in their day to day operations. While industries like manufacturing and food processing require large, complex machines, even lower hazard risks such as an office building still have expensive heating, cooling, data, and communications systems. In either scenario, the sudden failure of a piece of equipment could delay operations, cause further damage, and cost the businessowner tens of thousands of dollars in repairs and lost income – Equipment Breakdown coverage protects against this.

What Businesses Need Equipment Breakdown Insurance Coverage?

Any type of business that relies on equipment or machinery should consider Equipment Breakdown insurance. This even includes the electrical system in your building – if a power surge causes an outage resulting in lost income, or damages other components like computers or servers, Equipment Breakdown coverage responds.

How Much Does Equipment Breakdown Cost?

Equipment Breakdown premium is typically determined by type of business, types of equipment, and their replacement cost values. Premiums generally range from $250 - $1,500 on an annual basis.

How Much Coverage Does Equipment Breakdown Provide?

The limits on the Declarations are for loss or damage from a single breakdown event but generally are equal to your total property insurance limit. With regard to the additional coverages, a $25,000 limit is automatically included unless a higher limit is entered on the Declarations.

What Equipment Breakdown Coverages are Available?

  • Property Damage

  • Expediting Expenses

  • Hazardous Substances

  • Spoilage

  • Data Restoration

  • Service Interruption

  • Business Income and Extra Expense

What does equipment breakdown insurance not cover?

In order for EB coverage to take place it must be caused by the breakdown of one of the four types of equipment.

  • Pressure vessels and vacuum equipment: Includes any equipment built to operate under internal pressure or vacuum. Examples are boilers, water heaters, vacuum pumps, autoclaves, steam cookers, and pressurized storage tanks.

  • Electrical or mechanical equipment: A broad category that includes things like transformers, circuit breakers, furnaces, air conditioners, generators, compressors, refrigerators, ovens, production machinery, and elevators.

  • Communication and computer equipment: Examples are telephone systems, security systems, fire alarm systems, computers, and printers.

  • Utility-owned equipment: Means equipment that fits one of the above categories and is owned by a utility. The equipment must be located at the described premises and used solely to supply utility services to the insured's premises. An example is a utility-owned transformer located on your premises and used by the utility to deliver electricity to your business.

Equipment Breakdown does not cover the repair or replacement of equipment, or resulting damage due to normal wear and tear, misuse or miscalibration of equipment, defect, programming error, or computer virus. Not all coverages listed are available to all clients and vary from carrier to carrier. Consult policy for actual coverage.