Farm and Commercial policies cover the electrical, mechanical and other equipment used in most operations for losses caused by fire, theft, collision and other events. But most property policies specifically exclude losses arising from a very common problem, equipment breakdown, which includes electrical injury (surge), mechanical breakdown, pressure explosion, rupture and cracking.
So, any business operation that use pressure, mechanical, electrical and electronic equipment (and all businesses use these) is at risk of serious financial loss, unless you make equipment breakdown coverage part of your insurance program.
Kinds of equipment you might need to insure against breakdown include electronic equipment, boilers (heating and processing), telephone systems, cash registers, electrical panels, wiring of the buildings, electric motors, hot-water storage tanks, transformers, air-conditioning units and refrigeration units.
Equipment breakdown insurance protects your business against sudden and accidental breakdown of machinery and equipment due to causes such as electrical arcing, short circuits, operator error, overload or burnout. Mechanical, electrical, electronic and/or equipment under pressure can all be insured to protect your business from losses caused by breakdown.
This form of coverage complements your property coverage’s, providing that extra protection you need in case of breakdowns but not duplicating coverage for losses caused by other events.
Coverage can be extended to provide the protection you need for income loss and extra expenses incurred due to a breakdown. You can choose the business interruption and extra expense coverage, including service interruption you need. Losses due to change in temperature causing spoilage can also be covered.
Equipment breakdown insurance can be added to all insurance programs.
Be sure to seek advice and purchase insurance from those who understand your business!