Equipment Breakdown

Equipment is exposed to unique risks that other property is not, such as electrical short circuits and mechanical forces. Unbudgeted losses from a breakdown can be extremely costly, and in many cases, greatly impact the bottom line. Therefore, equipment breakdown coverage is needed to pay for the financial loss incurred as a consequence of a breakdown. Equipment breakdown coverage fills those gaps created by standard insurance policies, which specifically exclude losses for equipment damage caused by:

  • Mechanical breakdown
  • Electrical arcing
  • Artificially generated electrical currents
  • Centrifugal force
  • Boiler overheating, cracking, bulging, sagging
  • Bulging, cracking or collapse of pressure vessels, such as water heaters, compressed air tanks, steam cookers and kettles

Equipment breakdown insurance has frequently been referred to as ?boiler and machinery? insurance; but, the reality is that this specialty insurance covers far more than boilers and machinery. Equipment breakdown coverage fills those gaps created by standard insurance policies, providing coverage for these types of equipment:

  • Boilers, pressure vessels, water heaters
  • Electrical distribution systems
  • Heating and cooling systems
  • Refrigeration (including lost refrigerant)
  • Office equipment
  • Communication systems, including telephones and voice-mail systems
  • Security and fire detection systems
  • Ovens, stoves, furnaces
  • Elevators, escalators, cranes, hoists, lifts
  • Cash registers and inventory control systems
  • Diagnostic Equipment
  • Production machinery
  • And more