Equipment Breakdown Insurance

Equipment Breakdown Insurance

What is Equipment Breakdown Insurance?


Equipment Breakdown Insurance is just what the name implies: insurance that pays for the financial loss incurred when equipment breaks and stops working. Equipment can be subject to hazards such as power surges, short circuits, centrifugal force, boiler overheating or cracking, and mechanical breakdowns. For many businesses, certain pieces of equipment are essential to daily operations. Equipment breakdown insurance is concerned specifically with the equipment that a company uses on its property, rather than the property itself.


Coverage Components


Equipment Breakdown (boiler and machinery) Insurance covers more than the equipment itself. It pays for Property Damage, Business Income, Extra Expense, Expediting Expense and Perishable Goods. The following is a list of coverages typically provided by an equipment breakdown policy:


• Property Damage—pays for the cost to repair or replace damaged equipment or other covered property, including computers, due to a covered accident.


• Off-Premises Property Damage—covers portable equipment that is damaged when away from covered location.


• Business Income—covers the loss of business income due to an interruption caused by a covered accident from the date of loss until such equipment is repaired or replaced or could have been repaired or replaced, plus additional time to allow your business to become fully operational.


• Contingent Business Income—covers business income loss resulting from an equipment breakdown at the location of a key supplier or customer.


• Extra Expense—pays for additional costs (e.g., equipment rental) you incur after a covered loss to maintain normal operations.


• Service Interruption—extends business income and extra expense coverage resulting from a breakdown of equipment owned by a supplier with whom the insured has a contract to supply a service. If there is no contract, the equipment must be within a mile of the location. Covered services include electrical power, communications, waste disposal, air conditioning, refrigeration, heating, natural gas, compressed air, water or steam.


• Perishable Goods—covers the spoilage of food, manufactured goods or other perishables following a covered accident. Also pays for loss of perishables due to ammonia contamination and for perishable goods damaged by a service interruption.


• Demolition—pays for building demolition and rebuilding required by building laws.


• Ordinance or Law—pays for additional costs, other than demolition, to comply with building laws or codes.


• Expediting Expense—pays for the cost of temporary repairs or to expedite permanent repairs to restore business operations.


• Hazardous Substances—pays for the extra cost to repair or replace covered property contaminated by hazardous substances released in a covered loss.


• Data Restoration—provides protection for data and computer programs. The coverage pays to restore data that is lost or damaged due to a covered loss.


• Newly Acquired Locations—pays for property damage and all other applicable coverages at newly acquired locations.


• Brands and Labels—reimburses you for the difference in revenues when you choose to sell merchandise damaged by breakdown for less than its full, premier brand value.


• Computer Equipment and CFC Coverage—provided up to the applicable policy limits.


No matter how hard you work, one disaster can destroy your business. Protect your business with the proper insurance and trust the people at Holden Agency Insurance to help you customize an insurance package to meet your specific needs.


Contact us today for a FREE comprehensive quote.