Equipment Breakdown Insurance

Equipment Breakdown Insurance protects your business from the loss caused by accidental breakdown of equipment.

Why would you need Equipment Breakdown Insurance?

The standard property insurance policy covers the damage to mechanical and electrical equipment due to external events, such as fire. However, it will not cover damage caused by internal causes such as:

• electrical arcing
• boiler explosion
• short circuit

Who would need Boiler and Machinery (Equipment Breakdown) Insurance?

Can you imagine your business without electrical equipment? In other words, if you use machines, mechanical and electrical equipment, it is clear that they are critical to the operation of your business.

So this Insurance provides protection to:

• Air conditioning and refrigeration
• Electrical equipment
• Computers and telecommunications
• Business equipment
• Production machinery
• Computer-controlled machines
• Security systems
• Retail “point of-sale” systems
• Ventilation systems
• Generators
• Elevators and escalators
• Boilers
• Hot water heaters
• Motors and pumps
• Engines

Do I still need this coverage?

I do not own much equipment, because I am a tenant. Moreover, as a tenant, the responsibility of equipment maintenance and repair should be stated on the lease agreement. Even though you are not responsible for it, you may incur loss of income due to the breakdown of landlord’s equipment. With Business Interruption coverage under the Insurance, loss of income due to Equipment Breakdown would be compensated.

In conclusion, we do risk assessment of your equipment and loss of income including consequential loss, and offer you the best insurance plan from among the many plans offered by many companies.

There are several companies that offer equipment breakdown insurance. For example, BI&I. You need to know the plans of several companies and choose the appropriate plan that is lean and sufficient for you.