Affordable Coverage Your Small Business Probably Can’t Afford to Be Without

Selecting business insurance coverage can be a weighty decision for many small business owners, particularly when it comes to optional coverage. Equipment Breakdown insurance is one instance where the benefits of having this coverage often far outweigh the costs. Added as optional coverage to your Business Owners’ Policy, this insurance can get your small business back up and running in the event something fails.

What’s in a Name?

When it comes to Equipment Breakdown insurance, the name says it all. Formerly referred to as Boiler and Machinery coverage, Equipment Breakdown insurance is protection for when mechanical or electrical equipment that you use for your business breaks down. The insurance covers essential costs to fix or replace the equipment, as well as making certain you still get paid. Coverage includes:

  • Equipment repairs, including labor
  • Replacement and restoration costs, including off premises equipment
  • Data restoration
  • Food spoilage
  • Public relations services
  • Lost income

Lost income from downtime and costs to fix or replacement your equipment can add up quickly, particularly if your business is down during this time. Equipment Breakdown can make all the difference to the health and success of your business by making certain you can get back up to normal operations.

The Chameleon Coverage

Small businesses come in all shapes and sizes in a huge span of industries. From bakeries to accountants to bicycle shops, Equipment Breakdown is an industry chameleon ─ blending with a wide range of businesses that rely on various types of equipment. Whether you rely on a computer, a hairdryer, a coffee grinder, an oven, or a lawn mower to get the job done, you’d be hard pressed if something went wrong, not to mention paying for unexpected repair or replacement costs. And since many small business owners don’t have the luxury of owning extensive back-up equipment or of hiring on-staff maintenance teams, this coverage becomes even more essential.

Insurance that Bridges the Gap

Both property insurance and equipment breakdown protect your property. But there are distinct differences. Property insurance provides coverage from perils such as flood and fire, but does not cover you when your equipment fails from direct physical damage that impacts the ability for the equipment to work. This includes:

  • Mechanical breakdown
  • Electrical discharge
  • Centrifugal force
  • An explosion or burst from a pressure vessel
  • Electronic Microcircuitry failure

As an example, you’re a small business owner of a local bakery. You come in to work one morning and your main commercial oven will not turn on, preventing you from fulfilling the morning orders. The building is exactly as you left it the night before with no apparent damage to the store. Instead, it’s identified that the problem is that the electric temperature sensor on the oven is broken due to a mechanical failure. This type of breakdown would not be covered under your property insurance. However, by adding Equipment Breakdown as optional coverage to your Business Owners Policy, you’ve bridged the coverage gap.

Coverage Too Affordable to Afford to Skip?

When weighing the cost-benefits of Equipment Breakdown coverage, the cost is nominal and has the potential to save you thousands of dollars in missed income and repair or replacement costs. What’s more, you can add this coverage to your Business Owners Policy, saving you time and often saving money versus purchasing a stand-alone policy.


This material is provided for information purposes only and is not intended to be a representation of coverage that may exist in any particular situation under a policy issued by one of the companies within Crum & Forster. All conditions of coverage, terms, and limitations are defined and provided for in the policy.

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