Equipment Breakdown

For most commercial insurance buyers, the property insurance policy or property coverage section of a package policy may not provide enough coverage if you use or own:


  • Boilers
  • Turbines
  • Pumps and compressors
  • Computers and telecommunications systems
  • Diagnostic equipment
  • Mechanical and electrical equipment
  • Pressure vessels
  • Production machinery
  • Refrigeration, heating and air-conditioning equipment


Most property policies have four basic exclusions that make boiler, machinery and equipment breakdown coverage necessary. These exclusions include:


  • all losses as a result of the explosion of steam boilers, steam engines, steam  turbines, or vessels under steam pressure;
  • electrical arcing (short circuits) of motors, generators, circuit breakers, electrical distribution boards, cables, and transformers;
  • mechanical breakdown; and
  • centrifugal force.


Most property insurance policies exclude loss caused by the perils above.  The Equipment Breakdown Insurance Policy covers these perils for direct damage to the building and personal property and indirect loss such as loss of income and extra expense.


We normally recommend purchasing this coverage as an endorsement to your package or property policy.  However, we will often recommend purchasing and customizing a stand-alone policy when a business owns a lot of equipment.


Are you confident your current insurance program includes Equipment Breakdown?  Give us a call to analyze your current coverage.  We can show you options that expand coverage without increasing cost.



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