Should You Get Equipment Breakdown Coverage?

Equipment Breakdown Insurance Basics

You walk into your business for another exciting day of work only to find that your telephone system has crashed overnight, your air conditioner starts blowing hot air in the middle of summer, or a power surge has left your computers unusable. Even though you have a commercial property policy, without the benefits of equipment breakdown insurance, your business could be on the hook to pay not only the repairs for these types of losses, but also lost income and potential replacement.

Your commercial property policy is designed to protect your equipment, furniture, and inventory from loss. However, these losses will be listed in your policy as events like fire, hail storms, wind storms, vandalism, and theft. Most likely, your commercial property insurance will be unable to protect your equipment from the unfortunate.

Luckily, equipment breakdown coverage can be added to a commercial property policy. With this endorsement, damages caused by a breakdown for any owned property will be covered, as well as other people’s property under your control (for which you are legally responsible).

Standard examples of covered equipment include:

  • Communication and Computer Equipment
  • Electrical and Mechanical Equipment
  • Pressure Vessels and Vacuum Equipment
  • Utility-owned Equipment

Breakdown, as defined by equipment breakdown insurance, is a defined term that applies to direct physical losses causing damage to covered equipment. The damage must be sufficient to require repair or replacement of the equipment.

Types of breakdown include:

  • Electrical failure including arcing (faulty wiring or motor burnout)
  • Mechanical failure
  • Failure of pressure or vacuum equipment

Don’t leave your equipment vulnerable to breakdowns. When you’re ready to find reliable insurance for your business, the team at Premier Risk Insurance are here to help! We serve Long Island and neighboring cities in New York – Contact us to get started today.