Equipment breaks. We’ve got a coverage for that!  What would you do if your business equipment experienced a mechanical breakdown and your production and business income suffered as a result?  Let the agents at Kasmann Insurance Agency help you mitigate your commercial losses with a wide variety of coverages and options, including Equipment Breakdown.

What Is It?

A lot of things have changed since the mid 1800’s when insurors began offering Boiler and Machinery protection. This coverage was for the damage done by explosions from steam-powered heating and manufacturing equipment.  Today, most business equipment is run by sophisticated and sensitive electrical components, so the old Boiler and Machinery coverage has been updated to more modern Equipment Breakdown coverage.

Why Do I Need It?

You already have insurance on your commercial property, but it is typically for loss against external forces (such as fire, lightning, or wind).  Were you aware that your coverage excludes electrical arching, mechanical breakdown, and explosion of boilers or pressure vessels?  By adding Equipment Breakdown, you can cover losses caused by power surges, electrical shorts, motor burnout, operator error, or mechanical breakdown.

Not only will Equipment Breakdown cover the cost to repair or replace the broken mechanics, it can also cover other property damage such as spoiled inventory and resulting loss of business income and extra expenses.  Please note that ordinary wear, tear, and aging are excluded but the following equipment could be covered under a breakdown endorsement:

  1. Mechanical – engines, motors, elevators, escalators, water pumps, generators, hot water heaters
  2. Electrical – electrical panels, transformers, cables
  3. Computers & Telecommunication – computers, phones, security systems, retail “point of sale” systems
  4. Air conditioning & Refrigeration
  5. Boilers & Pressure Equipment

Examples of Covered Losses

  • There is a city-wide brown out and then a spike in electric current which causes an ice cream vendor’s coolers to fail and his inventory to melt.
  • A blade on a turbine generator breaks and penetrates the engine.
  • The pressure control mechanism inside a boiler fails causing the boiler to explode and damage the building and contents.
  • A bolt breaks off inside a printing, grinding, or other type of machine and damages the components inside.
  • A power surge damages a computer used to operate production equipment, shutting production down for two days until parts can be ordered and the computer can be repaired.

Insure With the People You Trust

The agents at Kasmann Insurance are happy to help you and your business with your commercial insurance needs.  Equipment Breakdown is one of those extra, relatively inexpensive coverages that you may not have known you needed. In fact, the coverage is automatically included at no additional premium in Columbia Insurance Group’s new Safeguard Business Owners Policy.  We can also now offer an Equipment Breakdown endorsement for our homeowner customers through select personal lines carriers.  Contact us with your questions, or for a quote today!

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