Oil, Gas & Energy Insurance

Equipment Breakdown Insurance
for Oil, Gas & Energy

Compressors, pumps, and processing equipment are the lifeblood of an energy operation. Equipment breakdown coverage pays for sudden mechanical and electrical failure — not wear and tear — and can include the significant lost production income that follows a compressor or separator failure.

Industry-Specific Insight

Why Oil, Gas & Energy Businesses Need Equipment Breakdown Insurance

Compressors, pumps, and processing equipment are the lifeblood of an energy operation. Equipment breakdown coverage pays for sudden mechanical and electrical failure — not wear and tear — and can include the significant lost production income that follows a compressor or separator failure.

Coverage Details

What Equipment Breakdown Insurance Covers

Key protections included in a equipment breakdown policy for oil, gas & energy operations.

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

FAQs

Common Questions from Oil, Gas & Energy Businesses

Does equipment breakdown cover natural gas compressors?

Yes. Natural gas compressors, separation equipment, and other processing machinery can be covered under equipment breakdown for sudden and accidental failure.

Can we add business interruption to equipment breakdown for energy operations?

Yes. A business interruption extension covers lost production income while insured equipment is being repaired — critical for operations where downtime has immediate revenue impact.

Isn't equipment breakdown covered by commercial property?

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.

Does this cover normal wear and tear?

No — equipment breakdown covers sudden and accidental failure, not gradual deterioration or wear and tear. Routine maintenance issues and end-of-life breakdowns are generally excluded.

Complete Coverage

Other Coverages Oil, Gas & Energy Businesses Commonly Need

A complete protection plan for oil, gas & energy operations typically includes several complementary coverages.

We serve oil, gas & energy businesses in:

Oil, Gas & Energy · Equipment Breakdown

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