What is Covered and Excluded from Equipment Breakdown Insurance?

Most standard business insurance policies offer protection for the building and physical assets within, but this may not include the equipment you need for daily operations. Fortunately, equipment breakdown insurance can fill in that coverage gap, protecting vital mechanical and electrical systems from failure that could halt business.

The severity of equipment failure ranges from a minor inconvenience to a complete shutdown of business. The latter may be true if you lose air conditioning, especially during the hottest summer months. Let’s take a closer look at how equipment breakdown insurance can help, and what it excludes as well.

Mechanical equipment: This coverage can provide funds to repair or replace failed elevators, escalators, engines, water pumps, ventilation fans and other mechanical equipment.

Electrical and technological systems: Helps repair or replace electrical systems such as transformers, panels, phone systems, computers, security alarms and more. These systems are often interconnected, so a short circuit can spread destruction farther than the initial point of origin.

Air conditioning and refrigeration: Failure of these systems can cause spoilage, closure of business and lost revenue. This coverage provides the funds to help you get up and running quicker.

Boiler and machinery: Keeping this equipment in working order is imperative for hot water and heat throughout the building. This coverage helps you fund repairs, along with temporary solutions while repairs are being made.

Equipment breakdown insurance can save your business from the high expenses of the failure of these systems. However, it does not cover routine maintenance or general wear and tear. It’s up to you to take care of this equipment. Your coverage is there as a safety net in case of a sudden failure or breakdown.

Call your agent today to learn how adding this coverage option to your insurance portfolio can benefit your business!