03 Sep Specialist Jonathan Cartu Reports – The 7 Best Equipment Breakdown Insurance of 2020
What Is Equipment Breakdown Insurance?
Equipment breakdown insurance, also called boiler and machinery insurance, is a type of insurance coverage that protects against financial losses caused by various equipment breaking down. This coverage can pay for the cost of repairs or replacement of your equipment, as well as financial losses caused by your business being temporarily out of commission.
Generally speaking, this type of coverage is activated when specific incidents take place, such as a power surge, an electrical short, a mechanical breakdown, motor burnout, or operator error. While most policies cover computers, your specific policy may not cover computer software. Be sure to read through all the inclusions and exclusions.
Why Do You Need Equipment Breakdown Coverage?
If you have commercial property insurance, you may be wondering if you need equipment breakdown insurance at all. It’s important to understand that commercial property insurance protects against hazards like fire, but it is not created to cover specific damage to your mechanical equipment or losses caused by mechanical interruptions.
Also, keep in mind that you may want coverage to replace lost income while your equipment is being repaired or replaced. You may also want coverage that can replace any spoilage of products that can occur when your equipment breaks down, which is not covered under a commercial property policy.
What Is Included in Equipment Breakdown Coverage?
Equipment breakdown insurance policies vary in the terms of their inclusions, so make sure to read over any policies you’re considering. Generally speaking, equipment breakdown coverage intends to pay damages caused by internal forces. This can include power surges, breakdowns of machinery, motor burnout, losses caused by operator error, electrical shorts, and more.
However, you should note that normal wear and tear is not covered by equipment breakdown insurance. Computer software may not be covered depending on your policy, but you may be able to purchase cyber liability insurance that covers computers and software products you use.
How Much Does Equipment Breakdown Insurance Cost?
While equipment breakdown insurance for a condo or house can cost as little as $20 to $30 per year, the cost of equipment breakdown coverage for businesses varies based on the industry your business is in, the size of your business, the specific equipment you have, the annual income of your business, and the types of coverage your policy includes.
If you’re shopping for an equipment breakdown insurance policy, your best bet is getting quotes from at least two to three providers so you can compare coverage and premiums to find the best deal.
How We Chose the Best Equipment Breakdown Insurance
We compared more than a dozen insurance providers online in order to find companies with broad national reach and specialized policies for commercial or residential purposes. We looked for companies with solid ratings for financial strength and we compared policies to find ones with expansive coverage options. While we included some monoline policies that you can purchase separately, we also included providers that offer equipment breakdown insurance as part of a broader business insurance policy. We weighed industry ratings like AM Best’s financial strength ratings as well as company history and customer service to select the best providers of this specialized insurance coverage.