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Equipment Breakdown Insurance

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If your business relies heavily on equipment to carry out your daily operations, then you may want to consider protecting yourself in the event of an equipment breakdown. Delays in fixing or replacing equipment can be devastating to your bottom line. Equipment breakdown insurance can help you get back up and running in the event of a mechanical or electrical breakdown. Our experts can answer your questions and explain the coverage in more detail as it pertains to your specific business.

Consider Protecting Your:

  • Automotive equipment and systems
  • Cash registers and POS systems
  • Computers, copiers, fax machines
  • Diagnostic equipment
  • Mechanical and electrical equipment
  • Plumbing, heat, air conditioning
  • Production machinery
  • Refrigeration, stoves, ovens
  • Sound systems
  • Telecommunications systems

Protect Yourself From:

  • Replacing or repairing broken equipment
  • Business down time and loss of income
  • Surcharges for emergency or off-hours repairs
  • Goods lost as a result of equipment malfunction
  • Power surges and explosions
  • Operator errors and mechanical failures

FAQ

Most businesses rely on equipment that’s needed to carry out daily operations. Should this vital equipment break down, it must be repaired as quickly as possible. Equipment breakdown coverage is a unique type of insurance that’s specifically designed to help businesses cope with unexpected breakdowns of vital equipment. Depending on its terms and conditions, a policy might cover things such as the cost of replacing or repairing the broken equipment, any surcharges for emergency or off-hours repairs, the labor costs of having employees work on repairing the equipment, goods that are lost as a result of the equipment malfunction, and revenue that’s lost because operations had to be stopped.

Because many businesses rely on equipment that’s vital to daily operations, many businesses can benefit from having equipment breakdown insurance, such as restaurants, hotels, nightclubs, retail stores, medical practices, automotive garages, and body shops. As long as a business is dependent upon at least one piece of equipment, it may make sense to have this type of insurance.

Equipment breakdown insurance is designed so that policies can be adapted to cover a wide variety of different types of equipment. Things like refrigerators, stoves, ovens, and other kitchen equipment, electric, heat, air conditioning, and plumbing systems, sound systems, POS systems, medical equipment, specialized equipment.

Exactly what incidents a specific equipment breakdown policy covers are determined by the policy’s terms, conditions, and exclusions. A policy might cover incidents like power surges, explosions, operator errors, and mechanical failures.

Equipment breakdown policies are similar to boiler and machinery policies, and some insurance companies are even phasing out their boiler and machinery policies in favor of equipment breakdown ones. There are a couple minor differences such as the language found in equipment breakdown policies that determines what equipment is covered tends to be slightly broader than what’s found in boiler and machinery policies. And the coverages afforded by equipment breakdown policies are also frequently broader than those offered by boiler and machinery policies.

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