What is Equipment Breakdown Insurance?

Equipment breakdown insurance, formerly known as boiler and machinery coverage, protects against sudden and accidental breakdown of equipment. Unlike property insurance which covers external perils like fire, equipment breakdown covers internal failures: mechanical breakdown, electrical arcing, motor burnout, and pressure system failures.

Modern businesses rely heavily on equipment. When critical machinery fails, the costs go beyond just repair.

What Does Equipment Breakdown Cover?

Equipment breakdown coverage pays for repair or replacement of failed equipment, spoilage of perishable goods (like restaurant refrigeration failures), extra expense to maintain operations during repairs, and business income lost while equipment is being fixed. It can cover everything from HVAC systems to computer servers.

Beyond the Repair Bill

When essential equipment fails, repair costs are just the beginning. A restaurant loses inventory when refrigeration fails. A manufacturer loses production during repairs. Equipment breakdown coverage addresses these consequential losses, not just the direct repair costs.