Equipment Breakdown Insurance

Keep Things Running With Equipment Breakdown Insurance

Equipment breakdown insurance helps businesses keep operating, even when they run into machine issues. An equipment breakdown or issues with the machinery you use for operations can cause your productivity to come to a screeching halt. There are countless businesses that rely on many types of equipment for operations. When a breakdown happens, its important to have measures in place to get things repaired and get help covering these costs.

Unfortunately, your commercial property insurance does not typically cover you for equipment breakdown. If you rely on equipment to run your business, then you need equipment breakdown coverage to ensure you are protected.

What Is Equipment Breakdown Insurance?

Equipment breakdown insurance protects you in the event you have equipment or machinery issues. This is intended for equipment that is not automatically insured by other parts of your commercial plan. Your plan is enacted when a piece of equipment experiences internal damage, not if a piece of equipment causes damage to your property or a third party.

Who Needs Equipment Breakdown Insurance?

Any downtime is a potential for lost revenue. Businesses that rely on specialized equipment for operations are at a great risk of issues with tools and machinery. You need to protect yourself to ensure you are covered if you have a breakdown. All small businesses who have expensive equipment should consider this insurance product. Examples of common companies who have this policy are:

Skilled tradespeople
Contractors and construction companies
Manufacturers
Warehouses
Restaurant and food services
Retailers
Any business that relies on heavy machinery

Why Buy Equipment Breakdown Insurance?

You never know when something could stop working or require repairs. It often happens at the worst times – when you are on a tight deadline or when cash flow is low. This insurance protects you when things stop working as they should. Here’s why you should add this to your policy:

Financial safeguarding
Protection when unexpected repairs arise
Supplement what is not covered by your warranty care program
Faster recovery
Peace of mind

What Does Equipment Breakdown Insurance Cover?

Equipment breakdown insurance covers internal damage to your machines, tools, and equipment. This is typically caused by a mechanical malfunction, power surge, electrical issue, motor problem or even operator mistakes.

This plan provides you with coverage for:

Repair parts and labour
Replacement
Lost income
Lost or spoiled inventory
Expenses as part of the restoration period

Equipment Breakdown Insurance Examples

There are countless examples of situations where this insurance can help you. Here are just a few situations that may be applicable to your business:

The freezers breakdown in your local grocery store, spooling your food and causing inventory loss
The oven breaks down at your pizza shop, requiring it to be down for a day to be repaired
The refrigeration system breaks down in your warehousing facility
The motor breaks down on an important piece of your production machinery, bringing operations to a full stop

How Much Does Equipment Breakdown Insurance Cost?

The cost of your policy varies, primarily based on the type and amount of equipment you want to insure. Other factors that will influence how much you pay for your premiums include:

The total value of the piece
Your industry and risk profile
Claims history
Plan limits
Your insurer
If you bundle with other commercial insurance products

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2024-09-26

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2024-09-24

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2024-09-24

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Equipment Breakdown Insurance FAQs

Equipment Breakdown Vs. Commercial Property Coverage – How Are They Different?

The main difference between these two types of protection is the origins of the damage that is covered. Equipment breakdown will cover you when the source of the malfunction occurs within the machine (motor, power surge, circuits, etc.). Commercial property insurance covers you when the damage comes from an external source such as fire or vandalism.

What Is Boiler And Machinery Insurance?

This provides you with coverage for damage and breakdowns to your machinery. You will receive compensation to repair or replace damaged equipment. You will also receive compensation for losses occurred as a result of the breakdown.

Boiler And Machinery Insurance Vs Equipment Breakdown – What Is The Difference?

Both terms are used interchangeably to refer to the same type of insurance. Equipment breakdown is the more commonly used term today because it is more far reaching and can incorporate all types of machinery and technology.

What Is The Equipment Breakdown Insurance Limit?

Your plan limits will vary based on the type of machinery being insured, the limits available from your insurance and how much you choose to include in your plan.

What Type Of Equipment Needs Equipment Breakdown Insurance?

This type of insurance is applicable to many types of machinery you use for business. They include:

Mechanical
Electrical
Refrigeration
Air conditioning
Boilers
Computer systems
Production systems

Do I Need Equipment Breakdown Coverage If I Already Have A Warranty?

It is important to understand what is and is not covered under your warranty. They do not cover all types of harm and they have time limits. Adding this insurance will ensure you are covered under most situations.

Is Wear And Tear Covered By Equipment Breakdown Insurance?

No. Wear and tear is not covered by insurance. Policies cover you for unexpected or sudden accidental damage. Lack of maintenance can be grounds for a claim being denied.

Get An Equipment Breakdown Insurance Quote

Find the best equipment breakdown plan by comparing insurance quotes. Our advisors will help you identify the right policy to protect the equipment that helps your company operate efficiently. Get affordable rates from the top Canadian insurers and save more. Speak with us today. Call 1-855-550-5515 or request a quote online and we’ll be happy to help you.