Equipment Breakdown Insurance Built to Keep Your Business Running
Protect your equipment, operations, and revenue from unexpected mechanical and electrical failures.
What We Cover
We provide tailored equipment breakdown insurance solutions, including:
- Mechanical and Electrical Equipment Failure
- Boilers and Pressure Vessels
- HVAC and Refrigeration Systems
- Production and Manufacturing Equipment
- Electrical Panels and Systems
- Computer and Control Systems
- Resulting Business Interruption / Loss of Income
What is Equipment Breakdown Insurance?
Equipment breakdown insurance — historically referred to as boiler and machinery coverage — protects against sudden and accidental failure of equipment.
Unlike standard property insurance, which typically covers external events such as fire or water damage, equipment breakdown covers internal causes such as:
- Mechanical failure
- Electrical arcing or power surge
- Pressure-related explosions (non-combustion)
- Equipment malfunction
This coverage is critical because many of the most common and costly losses businesses face are not covered under standard property policies.
Business Interruption from Equipment Failure
Equipment breakdown doesn’t just impact machinery — it can shut down your entire operation.
This coverage can include protection for:
- Lost income due to equipment failure
- Extra expenses to restore operations quickly
- Spoilage of perishable goods (such as food or temperature-sensitive products)
For example:
- A restaurant loses refrigeration and inventory
- A manufacturing line shuts down due to equipment failure
- A commercial building loses heating or electrical systems
We help ensure your coverage reflects the financial impact of downtime — not just the cost of repairs.
Who Needs Equipment Breakdown Insurance
This coverage is important for a wide range of businesses, including:
- Manufacturing and processing operations
- Restaurants, hospitality, and food services
- Commercial property owners and managers
- Retail businesses with refrigeration or specialized equipment
- Agricultural operations with automated systems
- Offices and service businesses reliant on electrical systems
If your business depends on equipment to operate, this coverage should be a key part of your insurance program.
Common Risks & Considerations
Equipment breakdown exposure is often underestimated. Key considerations include:
- Age and condition of equipment
- Dependence on key systems for operations
- Cost and availability of replacement parts
- Potential for extended downtime
- Exposure to power surges and electrical issues
- Integration with business interruption coverage
Many losses occur without warning and can take significant time to repair — making proper coverage critical.
Operational Areas We Consider
A strong umbrella and excess liability program takes into account:
- Industry and operational risk profile
- Revenue size and growth trajectory
- Number of locations and geographic exposure
- Fleet size and transportation exposure
- Contract requirements and client expectations
- Long-term business strategy and expansion plans
We take a practical approach to understanding your business so your liability program is structured accordingly.
Integration with Commercial Property Insurance
Equipment breakdown coverage works alongside your commercial property insurance. While property insurance covers external events like fire or water damage, equipment breakdown fills a critical gap by covering internal failures.
Together, these coverages create a more complete protection program for your business.
We help ensure these policies are structured to work together — avoiding overlaps or gaps.
Why Choose Coughlin Insurance?
We focus on protecting not just your equipment — but your ability to operate.
Experience structuring equipment breakdown coverage across industries
Access to insurers specializing in equipment and operational risk
Ability to align coverage with property and business interruption programs
Practical advice focused on minimizing downtime and operational disruption
Ongoing support as your business evolves and equipment changes
Frequently Asked Questions
What is equipment breakdown insurance?
It covers sudden and accidental failure of mechanical or electrical equipment.
Is this covered under property insurance?
Typically no — standard property policies do not cover internal equipment failure.
Does it include business interruption?
Yes — many policies include coverage for lost income due to equipment failure.
What types of equipment are covered?
Anything from HVAC and refrigeration to production machinery and electrical systems.
When should I review this coverage?
Anytime equipment is added, upgraded, or your operations change.
Let’s build coverage that protects your equipment, your operations, and your revenue.
