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What Is Equipment Breakdown Insurance?

Equipment breakdown insurance is a valuable investment that can provide protection and peace of mind in the event of unexpected equipment malfunctions or breakdowns. Read on to learn more.

Equipment breakdown insurance is a type of insurance policy that provides coverage for the repair or replacement of essential equipment that has malfunctioned or broken down. This type of insurance is particularly important for businesses that rely heavily on equipment to operate, such as manufacturing plants, restaurants, or healthcare facilities.

Equipment breakdown insurance can cover a wide range of equipment, including:

  • Heating and cooling systems

  • Electrical systems and equipment

  • Computers and other electronics

  • Production machinery

  • Elevators and escalators

  • Communication systems

When this equipment breaks down, it can lead to significant disruptions in business operations, lost revenue, and expensive repair costs. Equipment breakdown insurance helps mitigate these risks by providing coverage for the cost of repairs or replacements.


In addition to covering the cost of repairs or replacements, equipment breakdown insurance can also provide coverage for other related expenses, such as business interruption losses, spoilage of perishable goods, and extra expenses incurred due to the breakdown.


It's important to note that equipment breakdown insurance is not typically included in standard commercial property insurance policies. Instead, it must be purchased as a separate endorsement or add-on to a commercial property policy.


If you own or operate a business that relies heavily on equipment, investing in equipment breakdown insurance may be a smart move. This type of insurance can provide valuable protection and peace of mind, ensuring that your business can continue to operate smoothly even in the event of unexpected equipment malfunctions or breakdowns.

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