Equipment Breakdown Insurance

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If your business depends on functioning equipment to operate and maintain revenue, a breakdown could be devastating. The threat of breakdown is increasingly prevalent because technologically advanced equipment tends to be sensitive and fragile. Problems with your equipment can be extremely risky if you are not properly insured, as standard Property Insurance will not cover these types of losses. Equipment Breakdown Insurance (formally known as Boiler and Machinery Insurance) will cover you in the event of damage or a breakdown.

What is Covered Under Equipment Breakdown Insurance?

  • Property Damage – Cost to repair or replace damaged equipment due to an accident.
  • Off-Premises Property Damage – Covers portable equipment damaged away from the covered location.
  • Business Income – Covers the loss of income as a result of a covered accident until equipment is repaired or replaced. Also allows for additional time after repair or replacement to ensure that the business is operating at full capacity.
  • Contingent Business Income – Covers income loss after an equipment breakdown at an essential customer or supplier location.
  • Extra Expense – Covers additional expenses used to keep the business going after a covered loss, such as equipment rental fees.
  • Service Interruption – Covers business income and extra expenses after a breakdown at a supplier with whom the insured has a contract. If no contract exists, the equipment must be located within one mile of the insured’s location.
  • Perishable Goods – Covers food spoilage, manufactured goods or other perishable items after a covered incident.
  • Demolition
  • Ordinance or Law – Covers costs associated with complying with building codes and laws (other than demolition).
  • Expediting Expense – Covers the temporary or permanent repairs necessary for basic business activity.
  • Hazardous Substances – Pays to clean, repair or replace areas that are contaminated by hazardous substances released in a covered loss.
  • Data Restoration – Pays for the restoration of lost or damaged data.
  • Newly Acquired Locations – Pays for damage to newly acquired locations.
  • Errors and Omissions – Covers locations that are outlined in the policy.
  • Brands and Labels – Reimburses for the loss when having to sell a damaged product for less than retail price.
  • Waive of In-Use Restriction – Pays for damaged equipment that was not in operation at the time of a covered accident.
  • Computer Equipment and CFC Coverage