Essential equipment breakdown coverage for your business

All businesses rely on some form of electrical, systems-related, mechanical or pressure equipment, however, most commercial property policies don’t cover accidental equipment breakdown.

Problems with important systems, like heating and air conditioning, point-of-sale (POS) systems or refrigerators could impact or interrupt your business operations.

Avoid costly repairs, replacement costs and lost income with equipment breakdown insurance – available as an addition to your existing policy or as a standalone policy or on its own.

Talk to your broker about how equipment breakdown insurance coverage can protect your business.

Enjoy the confidence of knowing you’re covered against unforeseen costs or loss of income if any of your essential business equipment breaks down.

Equipment breakdown insurance is not included in most commercial insurance policies, however, if this coverage is in place, you’ll be protected in cases of:

  • Electrical arcing
  • Mechanical breakdown
  • Pressure explosion
  • Centrifugal force


You can build equipment breakdown coverage into your existing policy to eliminate potential coverage gaps, or purchase it on its own. Either way, you’ll have the protection you need, for your business.

Standard equipment breakdown coverage

If your business needs additional types of coverage, contact your broker to find out how you can add business interruption insurance protection for losses that may result from a breakdown, including:

  • Loss of income
  • Extra expenses
  • Damage caused by spoilage

Additional coverage options

Our team of experienced equipment breakdown insurance specialists understand the unique needs and risks of your business and they’ll work with your broker to provide customized protection that’s right for you.

You also benefit from the expertise of our highly skilled engineering staff, who can provide risk inspections, statutory certification and recommendations regarding risk management.

Specialized equipment expertise

An equipment breakdown can seriously impact your business and cost thousands of dollars due to lost revenue and expensive repairs.

Consider these examples illustrating how our customers have benefitted from this invaluable coverage:

  • The air conditioning system in an office building was damaged when a critical component broke down. It cost $65,000 to repair the system and a mobile chiller was needed to keep tenants cool during the repairs. The owner’s equipment breakdown insurance covered the cost of the repairs, as well as $30,000 to reimburse the income lost during the breakdown.
  • A wholesale food company experienced a power surge that affected a large walk-in freezer. The resulting $16,000 damage was covered by equipment breakdown insurance policy and the company stayed in business.