Safeguard Your Revenue: Equipment Breakdown Coverage

It's business as usual on a typical Wednesday when, without warning, activities are brought to a complete stop. The computers your team depends on won't turn on. A surge in the electrical supply has fried the internal components of your main workstation. The immediate impact is obvious: projects stall, customer service stops, and the loss of critical data looms. Without Equipment Breakdown Coverage (EBC), you could be facing a six-figure loss.

Think of EBC, sometimes called Boiler & Machinery Insurance, as your business’s safety net when essential equipment unexpectedly fails. Whether it's mechanical breakdown, an electrical surge, or motor burnout, this coverage helps pay to repair or replace the gear you rely on every day. Unlike standard property insurance that handles things like fire or theft, EBC steps in for internal equipment failures and often covers the loss of income and extra expenses incurred while operations are restored. 

EBC does not cover losses from normal wear and tear, gradual deterioration, neglected maintenance, or software problems. It addresses sudden, accidental mechanical or electrical failures, not issues caused by slow aging, routine upkeep, outdated software, or viruses.

How EBC Supports Business Continuity

Beyond Boilers: Today's policies extend beyond steam boilers and industrial equipment. Business operations depend on so much more, such as: 

• computers and servers that keep your data flowing
• motors and robots that drive production
• generators and compressors that power your facility
• air conditioners and phone systems that keep your space comfortable and connected.
• EBC protects all these vital assets, not just the traditional steam boilers of the past.  

Helps Prevent Costly Downtime: Replacing or repairing equipment is expensive. But, the real hit comes from downtime—orders delayed, customers frustrated, revenue lost. Without the right coverage, you’re left paying not only for repairs but also for the costly interruption to your business.  EBC typically covers expedited repairs, temporary equipment rentals, and lost income to help you recover faster and minimize revenue loss.

Why Does This Matter?: Standard property insurance often does not address these risks. Most policies cover damage from fire, theft, or storms, but typically exclude internal equipment failures. Electrical surges, mechanical failures, and steam apparatus explosions are usually excluded. EBC fills this gap by covering sudden, unexpected equipment failures that often halt operations.

Equipment Failure Scenarios That Put Revenue at Risk 

• An internal combustion engine breaks down when a connecting rod for a piston breaks and punctures the engine block; repair or replacement cost exceeds $1.7M.
• The control board of a computer-controlled production machine suffers surge damage and interrupts production activities; repair costs exceed $20,000.
• A high-pressure boiler explosion in a large manufacturing facility results in extensive damage to the insured building and equipment; repair or replacement costs exceed $1.5M.
• A power surge, caused by an electrical short when an animal chews through a utility power line, causes damage to a large air conditioning motor of a wholesale distributor; repair costs exceed $10,000. 

Your equipment is more than just machinery. It supports your cash flow, reputation, and customer trust. Equipment Breakdown Coverage protects not only your assets but also your revenue and your reliability in the eyes of your customers.

Protect your business beyond standard insurance. Contact us for a no-obligation policy review and keep your operations running smoothly, no matter what.   

Your business runs on reliable equipment
Your bottom line depends on it
Contact us for an evaluation