Equipment Breakdown AKA Boiler and Machinery Coverage; What is it?

Joe-Buick-Home-SliderEquipment Breakdown AKA Boiler and Machinery Coverage; What is it?

Your commercial property insurance policy without Equipment Breakdown coverage has some gaps that you should know about.  It is important to discuss with your agent what exposure you have and how you can at least consider an option for this. Here is some general information to discuss with your agent.

What does Equipment Breakdown  cover?

  • Repair or Replacement of  Manufacturing Equipment
  • Repair or Replacement of “other” property
  • Property of Others
  • Loss of Income from covered Breakdown Event
  • Computer Hardware Breakdown or Loss
  • HVAC Repair or Recovery of Pumps, Pressure Vessels and Mechanical Devices
  • Power Surge Damages
  • Steam Systems 

Who has potential Exposure?

  • Apartment Buildings
  • Auto Dealers
  • Bowling Alleys
  • Chemical Plants
  • Churches
  • Colleges
  • Food Processing
  • Foundry
  • Greenhouses
  • Hotels
  • Manufacturers
  • Office Buildings
  • Schools
  • Restaurants
  • Retail Stores
  • Supermarkets
  • Warehouses
  • Many Others……. 

Even small commercial operations have risk as you can see from the list of potential Exposures/coverage triggers. A business could have a serious breakdown of equipment or HVAC and literally be shut down for a extended period of time….with NO COVERAGE if this is not included as part of your insurance program. Has your agent discussed Equipment Breakdown or Boiler and Machinery Coverage with you?

Note: Thanks to C.N.A Insurance for contributing coverage examples and details for this blog.

Joe Buick, CIC, CRM | vice president


Kapnick Insurance Group | Strength. Knowledge. Direction.

333 Industrial Dr. | Adrian, MI  49221 |

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