Everything to Know About Equipment Breakdown Coverage

Equipment breakdown coverage is a cost-effective way to keep critical household equipment up and running after mechanical or electrical breakdowns, which are often not covered under a standard homeowners policy.

What does equipment breakdown insurance cover?

Equipment breakdown insurance protects you in the event of breakdowns caused by power surges, motor burnout, boiler malfunction and operator error. Equipment breakdown insurance covers all sorts of equipment – mechanical and electrical equipment, computers and communication equipment, air conditioning and refrigeration systems, boilers and pressure equipment. It also includes coverage for new technology.

Equipment breakdown coverage can pay for:

• The cost to repair or replace the damaged equipment

• Costs for time and labor to repair or replace the equipment

• Business Income losses when a covered breakdown causes a partial or total business interruption

• Other expenses incurred to limit loss or speed restoration

• The cost to replace spoiled stock or materials

Does property insurance cover equipment breakdown?

No. Most standard property insurance policies don’t cover your business equipment. And warranties can be limited – typically only covering new equipment for a short period of time. This insurance will also cover equipment repair, business income losses and lost or damaged inventory/materials.

Reach out to your Insurance One producer to look into adding equipment breakdown coverage to your policy. Visit our Team page if you need to find a producer to connect with!