What Is Equipment Breakdown?
Equipment Breakdown coverage is designed to respond when equipment like HVAC systems, refrigeration units, boilers, or electrical panels suddenly and accidentally fail — something standard commercial property policies typically exclude. It can also extend to related losses like spoiled inventory or lost income while repairs are made.
Who Needs It
Restaurants, grocery stores, medical and dental offices, manufacturers, hotels, and any business relying on specialized mechanical or electrical equipment can benefit from this coverage, since a single breakdown can be costly to repair and disruptive to operations.
Real-Life Claim Scenarios
Refrigeration Failure Spoils Inventory
A walk-in cooler unexpectedly fails overnight, spoiling perishable inventory. Equipment breakdown coverage may help pay to repair the unit and replace the spoiled goods, subject to policy terms.
HVAC System Failure in Summer
A rooftop HVAC unit suddenly fails during a heat wave, forcing a temporary closure. Coverage may help pay for the repair and any covered business income loss during downtime.
Electrical Surge Damages Equipment
A power surge damages point-of-sale systems and other electronics. Equipment breakdown coverage may help pay to repair or replace the affected equipment.
Boiler Malfunction at a Hotel
A hotel's boiler malfunctions, disrupting hot water service for guests. Coverage may help with repair costs and related expenses tied to the breakdown.
Medical Equipment Failure
A piece of diagnostic equipment at a medical office suddenly stops working. Equipment breakdown coverage may help pay for repair or replacement, subject to the policy's terms.
What It May Help Cover
- Repair or replacement of equipment that suddenly breaks down
- Spoilage of food or inventory due to refrigeration failure
- Business income loss during equipment repairs
- Expediting expenses to help speed up repairs
- Pressure vessel or boiler-related failures
- Damage from electrical surges and arcing
Coverage Limitations
Standard commercial property coverage generally excludes mechanical and electrical breakdown, which is why this is typically a separate endorsement or policy. Coverage applies to sudden and accidental breakdowns, not gradual wear and tear, and is subject to policy terms and underwriting.
Industries That Commonly Need This Coverage
What You'll Need for a Quote
- List of major mechanical and electrical equipment
- Age and maintenance history of key equipment
- Estimated value of perishable inventory, if applicable
- Whether the business relies on equipment for daily operations
- Prior equipment breakdown claims
- Current property insurance carrier
Upload Insurance Requirements for Review
Have a certificate request, lease clause, client contract, or vendor requirement tied to equipment breakdown? Upload the document and a Casurance specialist can review the requested limits, wording, and additional insured language.
Frequently Asked Questions
Related Coverages
Get a Equipment Breakdown Quote
Tell us about your business and a Casurance specialist can help you review Travelers equipment breakdown options, subject to underwriting approval and coverage availability in your state.
Coverage described on this page may help address certain risks common to this coverage line, subject to policy terms, conditions, exclusions, and underwriting approval. Coverage availability, limits, and pricing vary by state and are not guaranteed. This page is for informational purposes only and is not an offer of coverage or legal advice.
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