Equipment Breakdown Insurance: Protect your business from unexpected losses

As a business owner, it is vital to be prepared for any kind of disaster or unexpected event that can cause damage to your property or equipment. This is where Equipment Breakdown Insurance comes into play. It is an insurance policy that covers the repair and replacement costs of equipment that has suffered from a breakdown or failure.

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What is Equipment Breakdown Insurance?

Equipment Breakdown Insurance is a type of policy that covers the costs of repairing and replacing damaged equipment in case of any unexpected failure or mechanical breakdown. It provides coverage for both electrical and mechanical equipment, which can include air conditioning and refrigeration systems, generators, boilers, and many others. If any of this equipment fails, your business could suffer significant financial losses if you do not have adequate insurance coverage.

What Types of Insurance Does Equipment Breakdown Insurance Cover?

Equipment Breakdown Insurance covers a wide range of equipment and machinery used in various industries. Examples of types of equipment and machinery that the policy can cover include:

Electrical systems: This can include electrical panels, circuit breakers, and fuses.

Mechanical equipment: This can include engines, motors, and gearboxes.

Computers and communication systems: This can include servers, telephone systems, and network equipment.

Air conditioning and refrigeration units: This can include cooling towers, compressors, and air handlers.

Boilers and pressure vessels: This can fall under machinery and equipment and would be covered under most equipment breakdown policies.

Are There Any Exclusions or Limitations in Equipment Breakdown Insurance Policies?

While Equipment Breakdown Insurance policies are designed to protect businesses from unexpected losses caused by equipment breakdowns, there are exclusions and limitations. These vary, but some of the most common limitations and exclusions include:

Wear and tear: Normal wear and tear is not covered under the policy. This means that if your equipment fails due to age or usage, it will not be covered.

Neglect: If the equipment failure is due to lack of maintenance or improper use, the policy may not cover the costs of repair or replacement.

Cyber events: Cyber events that cause equipment breakdown are not covered under typical equipment breakdown policies, however coverage may be available by endorsement or through purchasing additional cyber insurance.

Business interruption: While the policy covers the costs of repairing or replacing damaged equipment, losses may not be covered. It is important to verify with an agent if business interruption coverage can be added to a policy.

Protect your investment, your business, and your peace of mind with Equipment Breakdown Insurance.