- What is it?
Equipment breakdown coverage is specialized commercial property insurance for essential equipment. Rather than insuring against standard loss or damage, it generally covers malfunctions or breakdowns.
- Who’s it for?
Any California business that relies heavily on specific equipment for its operations may want equipment breakdown insurance. It can be especially helpful if dependent on highly specialized equipment.
- What is offered?
- Operational error
- Mechanical failure
- Electrical discharge
- Power fluctuation
Equipment Breakdown Coverage in California
What is equipment breakdown coverage?
Some California businesses see their operations come to a complete halt when essential equipment malfunctions. To help get essential equipment running as quickly as possible, there’s equipment breakdown coverage.
Equipment breakdown coverage is specialized commercial property insurance for essential equipment. Rather than insuring against standard loss or damage, it generally covers malfunctions or breakdowns.
Which California businesses should consider equipment breakdown insurance?
Any California business that relies heavily on specific equipment for its operations may want equipment breakdown insurance. It can be especially helpful if dependent on highly specialized equipment.
For example, equipment breakdown insurance might be useful in situations such as:
- Apartment complex might need a furnace, air conditioner, or water heater immediately serviced if the appliance breaks down.
- Manufacturing facility might need assembly line machinery quickly repaired if a key part of the line fails.
- Warehouse might need inventory tracking equipment quickly repaired if something malfunctions such that items can’t be properly tracked.
- Retailer might need a point of sale (POS) system immediately fixed if it goes down when the store is open.
- Craft brewery might need fermentation equipment repaired, and to recover financial losses, if a tank or other equipment leaks.
- Furniture maker might need a CNC or other major tool quickly repaired if theirs goes down.
- Restaurant might need a freezer, refrigerator, stove, or often immediately repaired if the appliance fails.
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What expenses does equipment breakdown insurance cover?
When there’s a covered malfunction, equipment breakdown insurance normally covers multiple associated costs. Depending on a policy’s specifics, it might reimburse:
- Repairs costs necessary to fix the equipment
- Emergency or after-hours service fees
- Labor costs if repairs are made by employees
- Supply and inventory losses resulting from the breakdown
- Revenue losses resulting from the breakdown
An insurance agent who specializes in equipment breakdown policies can review more specifically what costs a specific policy would likely cover.
What types of equipment can be protected?
Equipment breakdown policies are available for most types of essential equipment that businesses use. Policies might cover anything from HVAC equipment and kitchen appliances, to assembly line equipment and POS systems. Coverage is also available for highly specialized equipment.
What malfunctions does equipment breakdown cover?
Equipment breakdown policies can cover multiple causes of malfunction, depending on their terms and protections. Policies might provide coverage if equipment malfunctions as a result of:
- Operational error
- Mechanical failure
- Electrical discharge
- Power fluctuation
- Explosion
- Other causes as specified
Is boiler and machinery insurance the same as equipment breakdown policies?
Boiler and machinery insurance can generally be thought of as the predecessor of equipment breakdown policies. The term “boiler and machinery” stems from when boilers heated buildings and machinery ran factories.
Equipment breakdown policies normally encompass more than traditional boiler and machinery policies did. Equipment breakdown could include furnaces and machinery, but also computer systems, other electronic equipment, renewable energy equipment, kitchen appliances, and more.
Equipment breakdown policies have become more common and are broadly recommended. In certain cases, however, a boiler and machinery policy might still be a viable option. Businesses that are still unsure which would be better for them can consult with an insurance agent who knows both policies well.
How much do equipment breakdown policies cost?
Premiums for equipment breakdown policies vary, depending on the equipment, industry, usage, insurance claims history, and other details. An independent insurance agent can check quotes from several insurance companies, to see how much insuring specific equipment would be.
Where can California businesses obtain equipment breakdown coverage?
For help finding equipment breakdown coverage in California, contact the independent insurance agents at Truck Writer Insurance Services. Our agents will work closely with you to get essential equipment properly covered.
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