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Equipment Breakdown Insurance

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What Is Equipment Breakdown Insurance?

Equipment breakdown insurance provides you with a solution that can protect against the many short and long-term consequences associated with a breakdown.

Equipment breakdown insurance fills a gap in coverage that would otherwise exclude you from claiming equipment breakdowns.

Most commercial property insurance policies exclude losses resulting from the malfunction of equipment unless "breakdown" is the result of a covered peril. To address this gap in coverage, Equipment Breakdown Insurance will have you covered, regardless of the cause of the malfunction.

What Equipment Breakdown Insurance Is All About:

What Does Equipment Breakdown Insurance Cover?

Frequently Asked Questions

Who is covered by Equipment Breakdown Insurance?

Your Business Equipment breakdown coverage is designed to protect your business by replacing or repairing your equipment that fails. In addition to the physical equipment the coverage usually includes loss of business income, which can really be the make or break point in your business.

Equipment Leasing Companies If you are renting or leasing equipment from another company you do not own the equipment outright, so the company giving you the equipment will require you to repair or replace it if something should happen.

Landlord or Property Manager There may be times where the equipment you use is provided by the landlord or property manager. However, since you are using it for your own business purposes and it is in your care, custody, and control, you will be responsible for it.

Do I Need Equipment Breakdown Insurance?

You'll need Equipment Breakdown Insurance if:

  • You require extra protection for your business against unwanted outcomes and the unpredictability of life.
  • You want to ensure your business assets are protected for now and for the future.
  • You want coverage that extends beyond basic insurance policies.
  • You want protection for your business and equipment that extends beyond against the many forms of liability not included in basic coverage.

What Are the “Limits” on an Equipment Breakdown Insurance Policy?

An equipment breakdown policy covers specific types of protections in addition to what your primary insurance policies covers. Each of these protections will have coverage upwards of a given amount.

If your policy provides coverage upwards of $1 million, then this will be the limit. As the types of coverage needed for equipment breakdown vary greatly, each will have a different amount.

If you choose a policy that does not cover the full value, then you will be protected upwards of a given amount.

How Much Does Equipment Breakdown Insurance Cost?

The costs associated with equipment breakdown insurance vary in accordance with the specific policy you have chosen. Each policy is created based on your specific needs.

Your needs will differ based on the type and value of the equipment you have. You may want to protect different types of equipment, each of which has their own unique risks.

Additionally, this insurance can often act as an add-on to your existing basic coverage. Therefore, the costs will differ based on the primary policy you have in place.

Overall, the cost will be contingent upon the type of the insurance policy you choose and how much protection it affords. You may choose a policy that includes one, several or all of the aforementioned protections, each of which have their own costs.

For example, you may invest in a policy that only covers the costs of repairs and replacements. Someone else may include these protections while adding on protection for operators in the event of injury.

Regardless of the protections, you invest in; you will likely find yourself paying a small percentage of that amount in the form of a premium. Therefore, the cost of an equipment breakdown insurance policy can vary depending on what you are covering and to what extent.

What is Equipment Breakdown enhancement endorsement?

Rather than having to purchase a separate insurance policy to cover losses related to equipment breakdown, you can add an enhancement endorsement to your existing Business Owners or Commercial Package policy.

The endorsement will give you a separate limit for Equipment Breakdown coverage and sometimes a separate deductible. If the enhancement endorsement does not provide enough coverage for your business, a separate policy may be purchased.

What is the difference between “wear and tear” and equipment breakdown?

Equipment Breakdown coverage was designed to provide coverage for certain events such as bursting, seizing, fracturing, rupturing, and sudden failure.

Wear and tear is what happens over the life of machinery and cannot be prevented like corrosion, leaking, rust, erosion, and a decline in performance.

Equipment Breakdown coverage does not include wear and tear, so be sure to keep your equipment clean and up to date.

What is mechanical and electrical breakdown coverage?

Regardless of whether the coverage is called simply equipment breakdown, or it is called mechanical and electrical breakdown, it is the same.

The coverage is designed to provide coverage for direct physical loss and sometimes loss of income and other related expenses.

Are You Ready to Get Covered?

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