Equipment Breakdown Insurance from Massachusetts Specialists

Roger Keith & Sons

What is equipment breakdown coverage?

When essential equipment breaks down, the repairs and lost productivity can be costly. Equipment breakdown coverage may help Massachusetts businesses manage such costs if essential equipment or machinery malfunctions.

Equipment breakdown coverage offers specialized protection for essential equipment. The coverage generally protects against breakdowns, rather than damage or loss.

When should Massachusetts businesses get equipment breakdown insurance?

Equipment breakdown insurance might be recommended anytime a Massachusetts business relies on specific equipment. If a malfunction would stall operations, coverage is likely useful.

In particular, this insurance is especially useful whenever businesses are reliant upon major and/or highly specialized equipment. For example, the following businesses might get coverage:

• Apartment Buildings: Possibly to cover emergency repair costs in case a furnace, air conditioner, or water heater fails outside of standard business hours.
• Manufacturers: Possibly to cover emergency or in-house repairs if critical machinery fails, causing production to stop.
• Warehouses: Possibly to cover emergency repairs of specialized equipment that’s needed to keep products moving, so deliveries don’t get too backed up.
• Retailers: Possibly to provide emergency repair of POS systems, in case they break during a peak holiday shopping period.
• Food Producers: Possibly for refrigerators, ovens, or specialized equipment (e.g. a coffee roaster), to minimize delays and food losses if something fails.

What costs would equipment breakdown insurance pay for a covered malfunction?

In the event of a covered malfunction, equipment breakdown insurance might help pay most associated costs arising from the malfunction. These might include:

• Hired Repairs: Repair costs to fix the broken equipment, often including emergency calls during nights or weekends.
• In-House Repairs: Parts and labor costs if a repair is completed in-house by employees.
• Inventory Losses: The value of supplies or product inventory that’s lost while the equipment isn’t working (e.g. spoiled food if a refrigerator stops running).
• Revenue Losses: Lost revenue stemming from a slowdown in production, or the inability to temporarily run a business at all.

Whether specific costs are covered depends on a particular equipment breakdown policy’s terms. An insurance agent who knows equipment breakdown insurance well can check a policy’s terms.

What types of equipment are equipment breakdown policies available for?

Equipment breakdown policies are available for most major equipment that businesses might use. Coverage is broadly available for HVAC systems, major appliances, manufacturing equipment, computer and network systems, and specialized machinery. Many other types of equipment might be insured, too.

What types of malfunctions can equipment breakdown policies cover?

An equipment breakdown policy might cover a variety of issues that could cause malfunction. Depending on a policy’s protections, it may cover:

• Mechanical failure
• Operator error
• Electrical surge
• Other power fluctuation
• Explosion

Many other causes of malfunction might be also covered. A knowledgeable agent can review what a chosen policy would likely cover. 

Are equipment breakdown policies and boiler and machinery policies the same?

Today, equipment breakdown policies have largely replaced boiler and machinery policies. 

Boiler and machinery insurance is an older term that stems from when boilers and heavy machinery were the primary major systems businesses wanted to insure. Now, businesses need coverage for a much broader array of equipment. The main term used for these policies has changed to reflect current coverage needs.

In select cases, boiler and machinery might be used instead of equipment breakdown. This is fairly uncommon now, however, and the vast majority of businesses needing coverage will find that an equipment breakdown policy is the right choice (or only choice) for them.

How much do businesses pay to insure major equipment against breakdowns?

The cost of an equipment breakdown policy depends largely on what the equipment is, how much it costs to repair or replace, how easily it can be repaired, and how it’s used. Other factors also can impact premiums.

To find out how much insuring specific equipment or machinery would be, businesses should consult with an independent insurance agent. An independent agent will be able to request custom quotes from several insurers.

Where can Massachusetts businesses find equipment breakdown coverage?

If you need help insuring specific equipment, contact the independent insurance agents at Roger Keith & Sons. Our Massachusetts agents will work closely with you, to find equipment breakdown coverage that’ll provide the protections your business needs.