Equipment Breakdown Insurance
Protection when your essential equipment fails.
Modern businesses depend on equipment—HVAC, refrigeration, computers, and machinery. When equipment suddenly breaks down, standard property insurance usually doesn't cover it. Equipment breakdown insurance fills this critical gap, covering repair costs, spoiled inventory, and lost income from mechanical and electrical failures.
Get an Equipment Breakdown Quote
Often added affordably to your property insurance package
What Equipment Breakdown Covers
Mechanical Breakdown
Covers sudden and accidental breakdown of mechanical equipment—gear failures, bearing seizures, shaft breakage, and other mechanical failures that stop equipment from operating.
Electrical Failure
Covers damage from electrical arcing, power surges, short circuits, and motor burnout. Essential as more equipment relies on sensitive electronics.
Repair or Replacement
Pays to repair or replace damaged equipment, including parts and labor. Coverage extends to auxiliary equipment damaged by the breakdown.
Spoilage Coverage
Covers loss of perishable goods when refrigeration equipment fails. Critical for restaurants, grocers, medical facilities, and any business with temperature-sensitive inventory.
Business Income
Replaces lost income during equipment repairs. When essential equipment fails, this coverage keeps your business financially stable during downtime.
Expediting Expense
Covers overtime labor, express shipping for parts, and temporary equipment rentals to get you back in operation faster.
Equipment That Can Be Covered
HVAC Systems
Air conditioners, furnaces, heat pumps, chillers
Refrigeration
Walk-in coolers, freezers, display cases, ice machines
Electrical Systems
Transformers, switchgear, generators, UPS systems
Computers & Electronics
Servers, phone systems, medical equipment, POS systems
Production Equipment
Compressors, pumps, motors, manufacturing machinery
Specialized Equipment
X-ray machines, MRI, elevators, pressure vessels
What's NOT Covered
Equipment breakdown covers sudden failures, not everything that can go wrong:
Real Claims Examples
See how equipment breakdown insurance responds in common scenarios:
Restaurant Refrigeration Failure
Scenario: A compressor in the walk-in cooler fails overnight. By morning, $8,000 in food inventory is spoiled.
Coverage: Equipment breakdown pays for the $3,500 compressor repair plus the $8,000 in spoiled food—costs property insurance wouldn't cover.
HVAC System Breakdown
Scenario: Your commercial air conditioning unit's compressor burns out during a heat wave, forcing you to close for three days.
Coverage: Coverage pays for emergency repairs ($5,000), expediting costs for rush parts ($800), and lost business income during closure.
Medical Equipment Failure
Scenario: A veterinary practice's digital X-ray machine experiences an electrical failure, requiring complete replacement.
Coverage: Equipment breakdown covers the $25,000 replacement cost and provides temporary rental equipment during the wait.
Manufacturing Production Stop
Scenario: A critical motor in your production line seizes, stopping all manufacturing for a week.
Coverage: Coverage pays for motor replacement, expedited shipping, overtime labor for installation, and lost production income.
What Affects Your Premium?
Equipment breakdown premiums are generally affordable relative to the protection provided:
Equipment Values
Total value of covered equipment determines base premium
Equipment Types
High-risk equipment like boilers may cost more to cover
Age of Equipment
Older equipment is more likely to fail and may cost more
Maintenance Records
Well-maintained equipment demonstrates lower risk
Business Type
Businesses with critical equipment dependence pay more
Coverage Extensions
Spoilage, business income, and expediting add premium
Good Value: Equipment breakdown coverage is typically inexpensive—often just a few hundred dollars annually—compared to the potential cost of a single equipment failure. It's frequently bundled with property insurance for additional savings.
Protect Your Equipment Investment
Equipment breakdown coverage fills a critical gap in most property policies. Let's make sure your essential equipment is properly protected.
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Ryan Parrack Insurance
Serving Elkins, Buckhannon & Northern/Central WV
Elkins, WV