Here’s Why Your Business Needs Equipment Breakdown Coverage

Some business equipment might be inexpensive and easy to replace if something unfortunate were to happen. Others, not so much. When that happens, having equipment breakdown coverage is key to getting your machinery

Equipment Breakdown Coverage is a type of insurance that can be found as a part of your Business Property Insurance coverage program. Does all equipment need this type of solid coverage? Maybe not. But if you’re dependent on machines to get your job done, it might be a possibility to heavily consider.

Even if your office has an air conditioner, it might not seem like that deserves coverage. It’s only there for when it gets hot, which isn’t all the time. But would your office be unworkable for your employees if that air conditioner went out?

These are questions that business owners have to ask themselves. It’s about keeping your business running, even when the unexpected occurs. This is why your business needs equipment breakdown coverage, via The Balance.

What Equipment Breakdown Coverage Actually Covers

Also known as boiler and machinery insurance (because of machinery in the early 1900s), EB coverage is now commonly found wrapped in business property insurance or as a standalone.

The equipment back when this policy was first created was primarily heavy industrial machinery. Times have changed a little since then, and so have the machines. Coverage expands to covered property by a covered loss (of peril). So even if it’s property that’s not legally yours, it’s going to be covered if you are the one that’s constantly running it.

To qualify as a breakdown, here’s what you need to look at:

  • Failure of pressure or vacuum equipment
  • Electrical failure including arcing
  • Mechanical failure including rupture or bursting caused by centrifugal force

If you’re having air  pressure problems, motor problems or power surge issues, then you have a breakdown that is covered under your business property insurance.

Specific Equipment That is Covered Under This Policy

While there’s many exclusions to think about, here’s what’s currently covered underneath this type of policy:

  • Pressure vessels and vacuum equipment
  • Electrical or mechanical equipment
  • Communication equipment and computer equipment
  • Utility-owned equipment

Coverage Extensions to Purchase

If you need coverage extensions, here’s some extra offers that one can consider:

  • Ammonia contamination – If your food or product is covered by ammonia, then this coverage would protect you from any lawsuits that would stem from this plight.
  • Expediting expense – If repairs need to be made quickly, this coverage is perfect for you. Get everything done as soon as possible without having to worry about the expense of money.
  • Spoilage – If raw materials are damaged, you’re going to want to look into this type os business property insurance coverage. However, the issues must stem from lack of light, eoprer temperature or refrigeration.

Other coverages to consider include utility interruption, ordinance or law, errors and  omissions; brands and labels, and water damage.

About Haughn & Associates

Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.