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Equipment Breakdown Insurance, also known as Boiler and Machinery Insurance, is a type of coverage that protects businesses from financial losses resulting from the breakdown of machinery and equipment. This insurance goes beyond typical property insurance, which usually covers damages from external causes like fire, theft, or natural disasters. Equipment Breakdown Insurance specifically addresses the risks associated with the mechanical, electrical, and pressure-related failures of machinery and equipment.


Here Are Key Features And Aspects Of Equipment Breakdown Insurance

Coverage Scope

Equipment Breakdown Insurance covers a wide range of equipment, including but not limited to boilers, heating and cooling systems, electrical distribution systems, production machinery, refrigeration equipment, and computer systems. The coverage is not limited to specific types of equipment and can be tailored to the needs of the insured business.

Causes of Breakdown

This insurance typically covers breakdowns caused by various factors, such as electrical issues, mechanical failures, operator error, and even events like power surges. It may also cover damage caused by explosions, which can be relevant for businesses with equipment that operates under pressure.

Financial Protection

In the event of equipment breakdown, the insurance provides coverage for repair or replacement costs, as well as business interruption losses. This can include the cost of repairing or replacing damaged equipment, the expense of hiring temporary equipment, and the income lost during the period when the equipment is out of operation.

Business Continuity

Equipment Breakdown Insurance is essential for maintaining business continuity. For businesses heavily reliant on machinery and equipment for their operations, a breakdown can lead to significant disruptions. This insurance helps mitigate the financial impact of such disruptions, allowing businesses to recover more quickly.

Inspection Services

Some policies may include inspection services to assess the condition of covered equipment and identify potential risks. Regular inspections can help prevent breakdowns and ensure that equipment is properly maintained.


While Equipment Breakdown Insurance is comprehensive, it may have certain exclusions, such as wear and tear, gradual deterioration, and intentional damage. It's important for businesses to carefully review policy terms and conditions to understand what is and isn't covered.

Industry Applicability

This type of insurance is relevant to a broad range of industries, including manufacturing, healthcare, hospitality, agriculture, and technology, where equipment is a critical component of daily operations.

Equipment Breakdown Insurance is a valuable component of risk management for businesses heavily reliant on machinery and equipment. It helps protect against the financial consequences of unexpected breakdowns, allowing businesses to focus on their core operations without the fear of substantial financial losses due to equipment failures

Annagard Insurance Agency is always here for all your insurance needs. Please feel free to call us at any time, we will be delighted to speak with you.

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