Equipment Breakdown Insurance

Equipment breakdown coverage fills in the gaps for coverage not normally covered or sometimes excluded under the standard property policy.

Here are a few reasons why you need Equipment breakdown insurance:

Equipment you can depend on. Companies are increasingly acquiring and relying on costly equipment and new technologies. Whether it is electrical, distribution, environment controls, office or electronic equipment, refrigeration or computer systems – equipment is vital to your operations. Reliance on new technologies and equipment has actually led to a create probability that a critical system will fail. The resulting unbudgeted losses can be extremely costly, and in many cases, greatly impact your ability to operate.

  1. Equipment breakdown insurance covers more than just repairs: Equipment breakdown insurance helps protect you from the costs associated with losses to your facility’s equipment. It pays for:

  2. Direct property loss – the cost to repair or replace damaged equipment

  3. Costs associated with the time and labor to repair or replace the equipment

  4. Other expenses incurred to limit the loss or speed of the business restoration

  5. The loss value of spoiled products or materials

  6. Operations recovery expenses

In short, equipment breakdown insurance covers the physical damage and the financial damage, stemming from a covered equipment breakdown.

We provide protection from insured breakdown damage caused by:

  • Short circuits/electrical arcing

  • Power surges

  • Mechanical breakdown

  • Motor burnout

  • Boiler Damage

Equipment breakdown insurance covers many types of equipment

Heating and Cooling Systems

  • Today’s HVAC systems are more complex and costly to repair. Failures are common and cost tens of thousands of dollars. The expensive boilers and pressure vessels that generate and distribute your heat and hot water are vulnerable to breakdown.  An inhospitable climate can hinder your ability to serve those who depend on you.


  • Virtually everyone today depends or computers or other smart devices. Whether your using computers to track financial data or as an important research tool, these systems rely on highly sensitive and fragile technologies and are vulnerable to damage making you vulnerable to loss.


  • If your nonprofit depends on refrigeration, a breakdown can cause more than the loss of a major equipment investment, it could also mean the loss of very costly refrigerant. In addition, perishable goods can spoil.

Electrical Distribution Systems

  • Maximum power up time is important for any nonprofit operation. Since the panels, circuit breakers and cables in your power distribution system are all interconnected, a short circuit in one part can spread instantly to other parts of the system.   The cause can be as simple as a loose connection, dust or high humidity.

Telephone Systems

  • If your phone systems or communications goes down, so does your operation. Phones have circuitry that is easily affected by voltage spikes, heat, vibration and moisture.