Farm and Commercial policies cover the electrical, mechanical and other equipment used in most operations against fire, theft and other events. But most property policies specifically exclude losses arising from a far more common problem, equipment breakdown, which includes electrical injury, mechanical breakdown, pressure explosion, rupture and cracking.
So any business operation that use pressure, mechanical, electrical and electronic equipment (and most businesses today use at least some of these) is at risk of serious financial losses, unless you purchase equipment breakdown insurance.
Kinds of equipment you might need to insure against breakdown include electronic equipment, boilers (heating and processing), telephone systems, cash registers, electrical panels, motors, hot-water storage tanks, transformers, air-conditioning units and refrigeration units.
Your insurance broker can help!
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.
As options, 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 is easy to add to your insurance program.
Be sure to seek advice and purchase insurance from those who understand your business!