Equipment Breakdown Insurance provided by Browne Insurance Services

Commercial property insurance protects your business against equipment and machinery being damaged by fire, flood and other external risk. But, it doesn’t cover risks such as mechanical failure, breakdown, wiring problems or short circuits. Such breakdowns can bring your business to a grinding halt as you deal with both the cost and time spent repairing or replacing.
What is Equipment Breakdown Insurance?

A Equipment breakdown insurance policy can cover all sorts of equipment used in your business–such as elevators or heating–rather than just the machinery your business uses while manufacturing. Policies usually cover computer equipment, but will only pay out for physical hardware damage rather than software failure or malware.

It’s worth noting that, while manufacturer warranties may pay for repair costs or provide replacements in some circumstances, they usually aren’t as extensive as with systems breakdown insurance.

For example, the warranty might not cover accidental damage from human error, such as overloading electrical circuits. But, Equipment breakdown insurance will cover this type of incident.

What Equipment Breakdown Insurance cover?

Equipment Breakdown Insurance helps cover:

  • The cost to repair or replace damaged equipment, including time and labor
  • Lost income
  • Spoiled inventory
  • Necessary expenses incurred during the restoration period
There are five categories of equipment that equipment breakdown insurance typically covers:

Computers & communications

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Computers and communications,  which includes computer systems, phone systems, voice mail systems, security systems and fire alarm systems.

Boilers & pressure equipment

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Boilers & pressure equipment

Equipment Breakdown Coverage examples

Equipment breakdown insurance is smart to have – even if you don’t own your own building, and especially if the success of your business is dependent upon properly-functioning equipment owned and operated by a key supplier, such as a local power company.

For example, if you own a pizza shop that depends on online orders, as well as walk-in customers, your business will suffer if the power goes out due to a power surge. A power outage could result in loss of heat or air, the inability to process online orders, as well as the inability to prepare, cook, serve and sell food. And if the power is out long enough, your food inventory could spoil.

In this example, equipment breakdown insurance may help pay for:

  • Business income you lost while the power was out
  • The cost to repair your walk-in refrigerator and to replace a computer that were damaged by a power surge that occurred when the electricity was restored
  • Costs associated with the time and labor to repair and replace your damaged equipment
  • The cost to replace any spoiled food

If your business could suffer in the event of an equipment breakdown, this optional coverage may be a good choice. Our team can help you understand what your policy covers and whether your business may benefit from additional protections such as equipment breakdown coverage.

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As an independent agency, Browne Insurance Services
Helps you find the right Equipment Breakdown Insurance Coverage
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Palm Springs, CA
190 W Amado Rd Palm Springs, CA 92262
We extend coverage to individuals and businesses in Campbell, Palm Desert, Palm Springs, Pollock Pines, and Santa Clara areas.

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  • Cost of repair / replace
  • Cost of labour / time
  • Spoiled food
  • Loss of business income

Cost of repair / replace coverage

Risk Factors

Your walk-in refrigerator was damaged by a power surge that occurred when the electricity was restored.

Solution

System breakdown insurance can be considered to get your repair expenses reimbursed.

Cost of labour / time coverage

Risk Factors

Costs associated with the time and labour to repair and replace your damaged equipment may go from your pockets.

Solution

System breakdown insurance can be considered to get your labour charges reimbursed.

Spoiled food coverage

Risk Factors

Your perishable food kept in storage gets spoiled due to a power cut.

Solution

System breakdown insurance can be considered to get your cost of food replacement cost reimbursed.

Loss of Business Income

Risk Factors

A power cut stays for an entire day. Your staff doesn’t work but you still have to pay them for that day.

Solution

System breakdown insurance can be considered to get your lost business income reimbursed.

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