Equipment Breakdown Insurance, sometimes called Boiler and Machinery Insurance, helps protect your business when essential equipment fails. Whether it’s a power surge, mechanical failure, or operator error, a breakdown can shut down operations and lead to major financial losses. This insurance helps you recover quickly, repair or replace damaged items, and keep your business running.

Here’s a detailed breakdown of the coverages typically included:

Equipment Repair or Replacement

This coverage pays to repair or replace equipment that breaks down unexpectedly. Covered equipment can include:

  • HVAC systems

  • Boilers and pressure vessels

  • Electrical panels and transformers

  • Computer-controlled machines

  • Refrigeration units

Failures may occur due to electrical shorts, motor burnout, or mechanical failure. This policy helps cover the cost to fix or replace the damaged parts and get things working again.

Business Interruption

If broken equipment forces you to pause operations, you could lose revenue fast. Business interruption coverage replaces lost income during the downtime.

It also helps with ongoing expenses—like rent, employee wages, and utilities—while repairs are being made. This ensures your business survives even when key systems are offline.

Extra Expense Coverage

Sometimes, you need to act fast to minimize losses. Extra expense coverage pays for the additional costs involved in getting back up and running.

This might include:

  • Renting temporary equipment

  • Paying overtime labor

  • Expedited shipping for parts

  • Temporary relocation or storage

These extra measures help you stay open, even when things go wrong.

Spoilage Coverage

Do you store food, pharmaceuticals, flowers, or other temperature-sensitive products? A refrigeration or freezer unit failure can result in massive spoilage.

Spoilage coverage reimburses you for the cost of lost goods. It also covers cleanup and disposal expenses, which can add up quickly after a failure.

Data Restoration

Modern equipment often includes digital systems. If a power surge or failure corrupts your data, restoring it can be expensive.

This coverage pays for the cost of:

  • Recovering lost digital files

  • Reconfiguring software

  • Reinstalling programs

  • Hiring data recovery specialists

It helps prevent downtime related to lost or damaged digital assets.

Contingent Business Interruption

Sometimes, the equipment doesn’t belong to you—but it still affects your operations. For example, if a supplier’s machinery fails and they can’t deliver essential materials, your production might stop too.

Contingent business interruption coverage helps when equipment owned by others causes your business to suffer financially. It’s especially helpful for manufacturers, retailers, or any business that depends on third-party operations.

Service Line Coverage

Service lines—like water pipes, gas lines, sewer pipes, and electrical cables—connect your equipment to utility sources. If one of these lines fails, your equipment may go offline.

Service line coverage pays for repair or replacement of these exterior utility lines. It also helps cover any damage caused to your equipment as a result of that failure.

Why This Insurance Matters

Equipment can fail at any time. When it does, the costs can be steep. Repair bills, lost inventory, and downtime can quickly drain your resources. Even a short interruption can affect customer satisfaction, revenue, and employee productivity.

Equipment Breakdown Insurance keeps your business protected and prepared. It’s ideal for:

  • Restaurants

  • Retail stores

  • Manufacturing plants

  • Medical clinics

  • Salons

  • Breweries

  • Cold storage facilities

  • Offices with critical IT infrastructure

Let’s Protect Your Equipment and Your Bottom Line

Breakdowns happen. The good news? You don’t have to face them alone.

Call Combined Insurance Service LLC at 816-847-1911 to talk through your needs. We’ll help tailor a plan that protects your equipment—and your peace of mind.

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