Business Owners Policy
Property and general liability bundled into one policy for small and mid-sized firms.
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Equipment Breakdown
Mechanical, electrical and pressure-system failure, which property policies exclude.
What this cover does
Commercial property covers fire, theft and weather. It specifically excludes equipment that breaks down on its own — a compressor burning out, a boiler failing, a surge taking out a control panel. Equipment breakdown fills that exclusion and pays the resulting lost income too.
Typically included
- Mechanical breakdown of machinery and plant
- Electrical arcing, short circuit and power surge damage
- Boiler and pressure-vessel explosion
- Damage to the equipment and to surrounding property
- Business income lost while equipment is down
- Spoilage of refrigerated or climate-controlled stock
Common add-ons
- Expediting expenses to speed repair or replacement
- Hazardous-substance clean-up after a breakdown
- Service interruption from utility equipment failure
- Green upgrades to higher-efficiency replacements
Questions
What people ask about equipment breakdown
Is this not covered by my property policy?
No. Breakdown without an external cause is one of the clearest exclusions in a property form. It is a common and expensive surprise.
Does it cover old equipment?
Age affects the premium and sometimes the settlement basis, not eligibility. Carriers may ask for maintenance records on older plant.
Often taken together
Related cover
General Liability
Third-party injury, property damage and advertising injury claims against your business.
Read more →Quote Equipment Breakdown
Tell us what you already have and we will show you where this fits — or tell you plainly that you do not need it.