Does Your Business Need Equipment Breakdown Coverage?

Why you should secure commercial equipment breakdown insurance.

Does your business rely on specialty or extremely expensive equipment?  If so, then stop for a moment and imagine what would happen if this equipment were to breakdown or suffer a serious mechanical issue.  If you did not have the resources to immediately repair or replace the broken equipment, then your business would suffer.  Not only would you miss deadlines, violate contract agreements, and lose capital, but you would experience strained relationships and a tarnished reputation.  In extreme cases, your business would never recover, and you would be forced to shut your doors for good.

Fortunately, there are some steps that you can take to prevent this nightmare scenario from happening to your business.  For instance, you should make sure that your company’s equipment is protected by the right equipment breakdown insurance.  Here’s what you need to know about this essential commercial coverage.

  • What is equipment breakdown insurance?

As the name suggests, equipment breakdown insurance offers coverage to repair or replace your company’s equipment if it suffers an electrical or mechanical breakdown, motor burnout, boiler malfunction, and so on.  In addition to repair expenses, equipment breakdown insurance can also cover business income and inventory losses that result from the breakdown.  This type of insurance extends coverage to a wide array of equipment types, such as mechanical, electrical, heating and cooling, and computers and networks.

  • How is equipment breakdown insurance different from commercial property insurance?

Many business owners believe that they don’t need equipment breakdown coverage because they already have commercial property insurance in place.  However, it’s important to understand that these two types of coverage are fundamentally different.  While commercial property insurance will offer coverage for your business’s equipment, you can only access this coverage if your equipment is damaged by fire, storm damage, or other covered perils.  In contrast, equipment breakdown insurance offers coverage for the damages caused by issues with the machinery.  A good way to think about it is commercial property insurance handles the damage caused by external threats while equipment breakdown handles the damage caused by internal malfunctions.

This is what commercial equipment breakdown insurance can do for your company.  Want another wat to take care of your business?  Then make sure you have the right business insurance protection at the best price by giving our knowledgeable Total Protection Team a call at 951-600-5751, sending an email to, or stopping by our Murrieta, California office today.  We are always happy to help!