Commercial Equipment Breakdown
Protect your business from sudden mechanical and electrical equipment failures that can cause costly interruptions — added right onto your commercial policy.
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What's covered. And everything else.
Covered
- Sudden mechanical or electrical equipment failure
- Damage to boilers, pressure vessels, and HVAC systems
- Breakdown of motors, pumps, and generators
- Electrical arcing and short circuits
- Business income loss due to equipment outage
- Cost of temporary equipment rental or replacement
- Refrigeration or air conditioning system failures
Not covered
- Normal wear and tear or gradual deterioration
- Equipment that fails due to lack of maintenance
- Cosmetic or surface damage only
- Damage from fire, flood, or other insured perils
- Software or data loss unrelated to physical damage
- Equipment still under manufacturer warranty
- Intentional or negligent damage
And answers.
Common questions. And answers.
What types of equipment are covered under this policy?
Equipment breakdown insurance typically covers a wide range of mechanical and electrical equipment, including boilers, pressure vessels, HVAC systems, refrigeration units, electrical panels, motors, pumps, generators, and production machinery. Coverage applies to equipment you own or are responsible for maintaining.
How is equipment breakdown insurance different from property insurance?
Property insurance covers damage from external events like fire, storms, or theft. Equipment breakdown insurance specifically covers internal mechanical or electrical failures — things like motor burnout, electrical arcing, or pressure vessel explosions that property insurance excludes.
Does this policy cover business interruption losses?
Yes. If a covered equipment breakdown forces you to pause operations, the policy can reimburse lost business income and extra expenses incurred to keep your business running, such as renting temporary equipment or relocating operations.
Is coverage available for newly purchased or leased equipment?
Yes. Newly acquired or leased equipment is generally covered automatically, though you should notify your insurer to ensure proper documentation. Equipment must be in good working order and properly maintained to qualify for coverage.
What steps should I take if my equipment suddenly fails?
First, ensure the safety of all employees and secure the area. Document the damage with photos and notes. Contact your insurance agent or our claims team as soon as possible. Avoid making permanent repairs until an adjuster has assessed the damage, but you may take reasonable steps to prevent further loss.
Available Discounts:
Discounts vary by state and program and may be subject to underwriting eligibility and filings.
Important: Coverage availability, terms, limits, and exclusions vary by state and program. The policy governs; this website is a high-level summary and does not modify or replace the policy.