Equipment breakdown coverage, also known as boiler and machinery insurance, is a type of insurance that provides protection against the sudden and accidental breakdown of equipment, machinery, and systems used in your business operations. This coverage can help pay for the costs associated with repairing or replacing damaged equipment, as well as the loss of income your business may suffer as a result of the breakdown. Examples of equipment and systems that can be covered by this insurance include boilers, heating and cooling systems, electrical panels, elevators, and more.
What is equipment breakdown coverage?
What does equipment breakdown insurance cover?
Equipment breakdown insurance, also known as boiler and machinery insurance, covers the cost to repair or replace damaged equipment caused by a breakdown. This coverage includes:
Equipment failure: Equipment breakdown insurance covers losses due to sudden, accidental breakdowns of covered equipment, such as boilers, electrical systems, air conditioning units, and other machinery.
Property damage: This coverage extends to property damage caused by the equipment breakdown, such as damage to buildings or other equipment.
Business interruption: Equipment breakdown insurance can also provide coverage for lost income or additional expenses resulting from the breakdown, including the cost of temporary replacement equipment or lost business income due to the breakdown.
Spoilage: For businesses that rely on refrigeration or other specialized equipment, equipment breakdown insurance can also provide coverage for spoilage of perishable goods.
Overall, equipment breakdown insurance provides important protection for businesses that rely on expensive equipment to operate, helping to minimize financial losses and get businesses back up and running quickly in the event of an equipment breakdown.