As insureds struggle to manage expenses, the need for equipment breakdown coverage may be questioned. In today’s environment, however, nearly every business relies on some type of electrical or mechanical equipment to serve its customers.

Equipment breakdown coverage should be considered by any insured with phones, computers, photocopiers, fax machines, inventory scanners, electronic cash registers, heating and cooling systems, refrigeration systems, security and alarm systems, medical diagnostic equipment, processing and production equipment, sprinkler systems, boilers, and the list goes on.

Though the equipment itself may be covered by property insurance, typically causes of loss such as mechanical breakdown, electrical arcing, power surge, explosion of steam boilers and pipes, etc. are excluded. These coverage gaps are filled by Equipment Breakdown coverage.  This coverage pays for the cost to repair or replace equipment and machinery, and it also supplements the potential resulting loss of business income.

Now more than ever our insureds should spend a little more to protect the valuable investment they have made in their business equpment.