Equipment breakdown coverage is an insurance policy that provides protection against the cost of replacing your equipment after a breakdown or other specified incident.

Equipment breakdown coverage is often sold alongside other types of business insurance, such as property, liability and workers’ compensation.

What does equipment breakdown coverage cover?

• Equipment breakdown coverage provides protection for your business against the costs of replacing your damaged or broken equipment after a specified incident. This type of coverage often includes:
• The costs associated with repairing or replacing damaged parts, components and systems, such as electrical shorts or mechanical failures.
• The costs associated with removing and disposing of damaged equipment that needs to be replaced (such as hazardous waste disposal).
• The costs associated with repairing or replacing damaged wiring or plumbing systems that result from a covered incident (such as floods).
• The costs associated with repairing or replacing damaged heating and cooling systems that result from a covered incident (such as electrical shorts).