Every business today relies on some form of equipment to keep it operational; whether it’s production equipment, heating and air conditioning equipment or point of sale terminals. If any of this equipment fails, it can greatly impact a business in many ways including: loss of revenue, cancelled orders and damaged products.
Although commercial property policies cover equipment that’s been damaged or destroyed by an external force such as fire, water or vandalism, they don’t cover equipment that’s damaged or destroyed by sudden, internal and accidental breakdowns due to failure, short-circuits or malfunctions. When this happens, business owners will quite often absorb the costs themselves, in order to keep their businesses up and running.
An Equipment Breakdown policy covers*:
A policy will also cover any property that was damaged due to the breakdown.
The following types of equipment are covered:
Who Should Consider Equipment Breakdown Coverage?
Contact us today to review your current policy coverage and to discuss the benefits of adding equipment breakdown coverage.
*Equipment Breakdown policies do not cover equipment that simply shuts down and there’s no damage, or for minor damage that doesn’t require repairs. There is also no coverage for damage caused by deterioration, corrosion or wear and tear. A policy may also contain certain other exclusions.