Equipment Breakdown

Today’s business facilities consist of a lot more than they used to. Electrical supply and distribution systems, boilers that supply heat and hot water, and multiple air conditioning units are all common equipment that helps companies run nowadays – not to mention computer systems and multimedia projection. Equipment breakdown insurance will help protect you against the costs resulting from losses to your facility’s equipment.

Accidents and breakdowns that commonly happen to these kinds of devices are not covered by most fire/property insurance policies. In fact, these policies specifically exclude mechanical breakdown, electrical arcing, and/or damage due to a surge of electrical power, and explosion due to centrifugal force. With equipment breakdown insurance, in the event of an accident or breakdown to equipment, coverage may be purchased for the following:

  • Electrical burnout of motors, electrical distribution equipment (circuit breaker box including facility electrical wiring), and emergency generators and transformers
  • Mechanical breakdown of compressors, pumps, fans, blowers, and other machinery
  • Cracking or collapse of air conditioning or refrigeration system vessels, coils, or piping
  • Explosion of steam boilers and steam piping
  • Burning (overheating) of boilers due to insufficient water
  • Cracking of sections in cast iron boilers
  • Bulging, cracking, or collapse of pressure vessels, such as water heaters, compressed air tanks, steam cookers and kettles, expansion tanks, and condensate return tanks
  • The extra cost of expediting repairs
  • Damage to other people’s property in your care, custody, or control
  • Losses to property from the release of hazardous substances caused by an accident
  • Business Interruption protection, covering the expenses to get you back on track as soon as possible

Accidents will happen, but with equipment breakdown insurance, you’ll be prepared.