What is Equipment Breakdown Insurance?

Problems with your business equipment can be risky, if you are not properly insured. A standard property insurance policy will not cover these types of losses.

To combat potential risks, equipment breakdown insurance—formerly known as boiler and machinery insurance—will cover you in the event of a breakdown or damage.

The following are typically covered under this type of policy:

• Property damage (both on- and off-premises)
• Business income: Income lost resulting from a covered accident until equipment is replaced or repaired. Allows for additional time after repair or replacement to ensure that the business is operating at full capacity
• Contingent business income: Income lost after a breakdown at an essential customer or supplier location
• Extra expense: Additional expenses incurred to keep the company going after a loss (e.g., equipment rental fees)
• Service interruption: Income lost and extra expenses incurred after a breakdown at a supplier with whom the insured had a contract. If no contract exists, the equipment must be located within a few kilometres of the insured’s location
• Perishable goods: Food spoilage, manufactured goods or other perishable items lost after a covered incident
• Demolition
• Ordinance or law: Costs associated with complying with building codes and laws
• Expediting expenses: Temporary or permanent repairs to get the business going again
• Hazardous substances: Cleaning, repairing or replacing areas contaminated by hazardous substances after a loss
• Data restoration
• Newly acquired locations
• Errors and omissions
• Brand and labels: Need to sell a damaged product for less than retail price
• Waive of in-use restriction

Top 5 Most Common Breakdowns:

The following common breakdowns can often be avoided by properly conducting routine maintenance:

• Electrical systems
• Air conditioning and refrigeration
• Boilers and pressure vessels
• Computers and communication equipment
• Mechanical systems

A standard property insurance policy will not cover these types of losses. Call CMB at 780.424.2727 to get the right protection or click here to get a quote.