Equipment Breakdown Insurance — Watley Insurance Group

Commercial Insurance

Equipment Breakdown Insurance

Equipment breakdown insurance — sometimes called boiler and machinery or mechanical breakdown coverage — protects your business when mechanical, electrical, or pressure equipment fails suddenly and unexpectedly. From a commercial kitchen unit that stops working to a compressor that fails on the production floor, the cost of repairing or replacing essential equipment can be substantial, and the resulting business disruption can compound the loss. Equipment breakdown coverage fills a gap that standard commercial property policies typically don't address.

What Equipment Breakdown Insurance Can Help With

Coverage options vary by carrier and situation. A licensed agent can explain what applies to your specific needs.

Repair or replacement of mechanical and electrical equipment that breaks down unexpectedly

Refrigeration equipment and the spoilage losses that result from a breakdown

HVAC systems, boilers, pressure vessels, and compressors

Production machinery and manufacturing equipment critical to your operations

Business interruption losses caused by equipment breakdown downtime

Computer systems, servers, and electrical equipment used in your business

Who Often Explores Equipment Breakdown Coverage

Every situation is unique — a licensed agent can help you decide whether this coverage makes sense for you.

Restaurants, food retailers, and cold storage businesses with refrigeration equipment

Manufacturers and fabricators relying on production equipment

Medical and dental offices with diagnostic and treatment equipment

Office-based businesses with servers, phone systems, and IT infrastructure

Any business where equipment failure could halt operations and generate significant losses

Frequently Asked Questions

Have more questions? A licensed agent is ready to help.

Standard commercial property policies cover damage from external causes — fire, storm, theft. They typically exclude mechanical or electrical breakdown from internal failure. Equipment breakdown coverage specifically addresses that internal failure scenario.

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Coverage options vary by carrier and state. A licensed agent can explain details and availability.

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