Equipment Breakdown Insurance, formerly known as Boiler & Machinery coverage, protects your business from sudden and accidental mechanical or electrical failures. While commercial property insurance covers damage from external events like fire or theft, it typically does not cover internal breakdowns caused by power surges, motor burnout, or mechanical failure.
If a compressor seizes, an electrical panel arcs and fails, or your HVAC system breaks down unexpectedly, equipment breakdown coverage pays to repair or replace the damaged equipment and often covers related losses like spoiled inventory or lost income.
Protection for the Machines That Keep Your Business Running
Essential for Any Business That Relies on Equipment
This coverage is critical for:
Manufacturers
using production machinery
Restaurants and food businesses
relying on refrigeration and cooking equipment
Commercial property owners
with boilers, elevators, or HVAC systems
Medical offices
operating diagnostic machines
Retailers and offices
dependent on electrical systems and climate control
If your business would slow down, or stop entirely, due to equipment failure, this coverage deserves serious consideration.
More Than Just Repairs | Protection for the Ripple Effect
Equipment Breakdown Insurance typically covers:
Repair or replacement of damaged equipment
Electrical equipment coverage (panels, transformers, wiring)
HVAC breakdown insurance for climate control systems
Machinery breakdown protection for production equipment
Business interruption losses caused by equipment failure
Spoilage coverage for perishable goods
Expediting expenses to rush parts or temporary repairs
Example:
A power surge damages your building’s electrical panel and shuts down your production line. Equipment breakdown insurance pays to replace the panel, repair machinery, cover lost income during downtime, and even reimburse overtime costs to catch up on orders.
Where Standard Property Insurance Falls Short
Internal mechanical failure is often excluded under property policies.
Wear-and-tear or maintenance issues are not covered.
Manufacturer warranties are limited and may not cover catastrophic damage.
Without equipment breakdown coverage, replacement costs come out of pocket.
This policy fills the gap between routine maintenance and major disasters.
Additional Value: Inspections & Risk Prevention
Some boiler and machinery policies include inspection services for pressure vessels and key systems, helping prevent failures before they happen. Miller United can help you access policies that provide both protection and preventative resources.
Complete Protection for Critical Systems
We evaluate your operation to determine whether a breakdown could severely disrupt your business. Many new clients discover this coverage gap only after a loss. We make sure it’s addressed upfront, either as an add-on to your property policy or as standalone mechanical breakdown business insurance.
We work with top carriers to tailor limits based on your machinery value, downtime exposure, and business interruption risk so you’re protected without overpaying.
FREQUENTLY ASKED QUESTIONS
Common Equipment Breakdown Questions
Do I need equipment breakdown insurance if I already have property insurance?
Yes. Property insurance covers external events like fire, but not internal mechanical or electrical failures.
Will insurance cover my business if a machine simply fails?
With equipment breakdown coverage, yes... provided the failure is sudden and accidental.
Is this the same as a maintenance contract?
No. Maintenance contracts handle routine servicing. This policy covers unexpected breakdowns.
How much does coverage cost?
Typically affordable relative to the potential loss. Premiums depend on the type and value of equipment and your business operations.
Don’t Let a Machine Failure Shut You Down
A single electrical surge or equipment failure can halt operations and drain cash flow. Protect your critical systems with Equipment Breakdown Insurance from Miller United.
