Unexpected equipment failures can bring your business to a grinding halt. Whether it’s a refrigeration unit, computer server, or HVAC system, a single malfunction can result in lost income, damaged property, and costly repairs.
That’s where Equipment Breakdown Insurance (also known as boiler and machinery insurance) comes in.
What Does It Cover?
This specialized insurance helps cover:
- Repair or replacement of damaged equipment due to mechanical or electrical breakdowns
- Loss of income and property damage resulting from equipment failure
For example, if a freezer’s compressor fails and inventory is spoiled, the policy can help pay for the repair and replacement of goods—even if business continues as usual.
How Is It Different from Commercial Property Insurance?
While commercial property insurance covers damage from external events like fire, storms, or vandalism, it doesn’t cover internal breakdowns or malfunctions.
Equipment Breakdown Insurance fills that gap, offering coverage for things like:
- Power surges
- Operator errors
- Mechanical or electrical failures
It’s an important add-on for businesses that rely on machinery or systems to operate—whether you run a restaurant, warehouse, office, or retail shop.
Examples of Covered Incidents
- A surge fries your POS system
- Your HVAC unit breaks down mid-summer
- A refrigeration unit fails, spoiling thousands in inventory
- Your building’s boiler fails due to a pressure issue
What’s Not Covered?
Typical exclusions include:
- Normal wear and tear
- Rust, mold, or pest damage
- Poor maintenance or neglect
Some policies may also exclude equipment that’s transported off-site unless specified.
Tailoring Coverage to Your Business
Policies can be customized to include:
- Replacement cost vs. actual cash value
- Coverage for leased or vendor-owned equipment
- Protection for rented business spaces
- Upgrades to more energy-efficient or safer models at the time of replacement
With so many moving parts, it’s critical to work with an insurance advisor who understands how different commercial policies work together. At Bulger Insurance, we help you assess your risks and build a comprehensive insurance strategy that protects your operations from all angles.
Need help reviewing your coverage?
Contact us at info@bulgerinsurance.com or visit our Edmonton office to speak with an advisor.
