What does equipment breakdown cover

Coverage may include the cost of mandatory inspections of key equipment. A thorough inspection may help prevent problems before they arise. To learn what specific protections your business equipment breakdown coverage provides, read your policy carefully or ask your insurance agent.

Ordinary wear and tear on equipment is not typically covered by equipment breakdown insurance, says the Insurance Information Institute. Finally, equipment breakdown coverage has a limit , which is the maximum amount your policy will pay for a covered claim. You are responsible for paying out of pocket costs that exceed your coverage limit. Also, you may be subject to a coinsurance penalty if you are not insured for the full value of your contents.

According to IRMI , your insurer may require you to have coverage for a certain percentage of what your business property is worth.

If you do not have that amount of coverage, you may be subject to a penalty and have to pay more out of pocket when filing your claim. If your business could suffer in the event of an equipment breakdown, this optional coverage may be a good choice. A business insurance agent can help you understand what your policy covers and whether your business may benefit from additional protections such as equipment breakdown coverage. What Is Data Compromise Coverage?

Coverage subject to terms, conditions, and availability. Policy issuance is subject to qualifications. Retrieve a saved quote. Skip to main content Explore Allstate. Popular Searches. Allstate We help customers realize their hopes and dreams by providing the best products and services to protect them from life's uncertainties and prepare them for the future. If you think your small business may benefit from this type of insurance, be sure to connect with an agent for more information.

Property insurance covers damages from sudden external causes such as fire, flooding, or a tree falling into your building. This is where equipment breakdown insurance becomes necessary.

Equipment breakdown coverage is often purchased in conjunction with property insurance. Some business income—or business interruption insurance—policies also include coverage for equipment breakdowns.

You may be able to get discounts on your policy if you add it through an existing carrier or purchase a business owners' policy. If you're on the fence about the insurance, we recommend speaking to an agent to determine whether or not it's a good fit for you. It's always a safe bet to spend a small amount of money to safeguard the future of your company.

We recommend connecting with your commercial insurance agent or speaking to one of our qualified specialists about the coverages necessary and whether or not you can add it as an endorsement to your business income insurance or purchase the policy from your insurance company separately. If you'd like help or need more information on the subject, complete the form at the top of the page. Or you can give us a call at Yes, connect me now No, get quote online.

Get Quote. Important Disclosure Below. Thank you! We've received your information successfully! What is Equipment Breakdown Coverage? What Equipment is Covered? Covered equipment on these policies includes: Boilers and furnaces Computer equipment Phones and communication devices Heating and air conditioning systems Refrigeration systems Home security systems Home entertainment systems Equipment breakdown insurance usually covers the cost to repair or replace the above items, including time and labor associated.

Equipment Breakdown Coverage Examples Equipment breakdown insurance comes in handy in these scenarios: Example 1 : The motor inside your commercial refrigerator burns out and needs to be repaired. Also known as boiler and machinery insurance, or mechanical breakdown insurance, equipment breakdown insurance helps cover:. For example, if you own a pizza shop that depends on online orders, as well as walk-in customers, your business will suffer if the power goes out due to a power surge.

A power outage could result in loss of heat or air, the inability to process online orders, as well as the inability to prepare, cook, serve and sell food. And if the power is out long enough, your food inventory could spoil. Your commercial property insurance covers damages caused by covered external cause, such as a fire. Equipment breakdown insurance covers damages caused by covered internal forces, such as power surges, electrical shorts, mechanical breakdowns, motor burnout or operator error.

Keep in mind that even though equipment breakdown insurance covers computers, it does not cover software. Clipboard-flat Claims Envelopes-flat Pay a bill. All business insurance ». Small business types.