Equipment Breakdown Insurance helps cover:

A) The cost to repair or replace damaged equipment, including time and labor

B) Lost income

C) Spoiled inventory

D) Necessary expenses incurred during the restoration period

A) Mechanical, which includes motors, engines, generators, elevators, water pumps and specialized production and manufacturing equipment

B) Electrical, which includes transformers, electrical panels and cables

C) Computers and communications,  which include computer systems, phone systems, voice mail systems, security systems and fire alarm systems

D) Air conditioners and refrigeration systems

E) Boilers and pressure equipment

Equipment breakdown insurance is smart to have—even if you don’t own your own building—especially if your business’ success depends on properly functioning equipment owned and operated by a key supplier, such as a local power company.

For example, if you own a pizza shop that depends on online orders, as well as walk-in customers, your business will suffer if the power goes out due to a power surge. A power outage could result in loss of heat or air, the inability to process online orders, as well as the inability to prepare, cook, serve and sell food. And if the power is out long enough, your food inventory could spoil.

In this example, equipment breakdown insurance may help pay for:

A) Business income you lost while the power was out

B) The cost of repairing your walk-in refrigerator and replacing a computer that was damaged by a power surge that occurred when the electricity was restored

C) Costs associated with the time and labor to repair and replace your damaged equipment

D) The cost to replace any spoiled food

If your business could suffer in the event of an equipment breakdown, this optional coverage may be a good choice. Our team can help you understand your policy and whether your business may benefit from additional protections such as equipment breakdown coverage.