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Equipment Breakdown

Everything breaks down eventually. But when the equipment that businesses and families depend on stops working, the effects can range from inconvenience, to loss of revenue or even business failure. Comprehensive Equipment Breakdown Coverage is a critical endorsement for any property policy.

What is
equipment breakdown?

Equipment breakdown occurs when electrical or mechanical equipment stops working unexpectedly as a result of some catastrophic failure not associated with normal wear and tear. Equipment breakdown can affect commercial businesses, farming operations, as well as homeowners, and is classified into three categories or perils.

Modern Coverage
for Modern Exposure

As technology advances and becomes more integrated into our everyday lives, equipment breakdown becomes increasingly disruptive. In addition, the more advanced the technology, the more complex and expensive it is to repair or replace. Most property policies don’t cover equipment breakdown. However, an equipment breakdown endorsement will protect the property identified in the underlying policy.

What’s at Stake

These charts demonstrate just how often equipment breakdown occurs, as well as the severity of costs associated with each peril.

Frequency of Breakdowns
Severity of Breakdowns
  • Electrical Breakdown
  • Mechanical Breakdown
  • Pressure System Breakdown