top of page


Don't let your equipment stop you

A hotel chiller unit seizes up before a large national convention, which leads to cancelled catering events and other reservations. Numerical controls on a 400 ton stamping press fail, leading to an overload situation and failure of the press. These are all examples of seemingly small problems that can lead to huge losses.

What is equipment breakdown coverage?

Equipment breakdown insurance, also called Boiler And Machinery insurance (BMI), covers the cost of repairing or replacing the damaged equipment and business  losses incurred from the equipment not functioning. This type of insurance can cover a wide range of equipment, including HVAC systems, ovens, boilers and furnaces, refrigeration units, elevators, and office equipment.

Breaking down Equipment Coverage Insurance

Boiler and machinery insurance covers the risk that equipment, used by a business to deliver goods and provide services, will not function properly. Companies purchase this type of insurance to protect equipment much in the same way as property insurance protects buildings and liability insurance protects workers from injuries. Property insurance policies may exclude coverage for common equipment faults, such as overheating, electrical failures and mechanical breakdowns.

Boiler and machinery insurance is a type of specialty insurance and is not something that every business needs to purchase. It is most likely to be purchased by businesses involved in the manufacture of products, whether clay pots or concrete because the equipment is being run constantly. In addition to providing coverage for damage to the equipment itself, boiler and machinery insurance can provide

coverage for spoilage that may result from not being able to deliver or process goods in a timely manner.

While boilers and machines have been around for hundreds of years, this type of policy can also be used to provide protection for more modern pieces of equipment, such as computers, copiers, cash registers, and telephone equipment. Many modern technologies have not been around long enough to completely understand how the equipment can be damaged. For example, electricity surges can severely damage a computer’s electronics, rendering the machines useless for conducting business. This type of insurance is most appropriate for businesses that need more specialized coverage than what is available through property insurance.

Focus on Clear and Precise Communication

  • White LinkedIn Icon
  • White Twitter Icon
  • White Google+ Icon

World Events



Equipment breakdown insurance covers the following and more


Power surges Mechanical malfunction Operator error



Mechanical & electrical
Computers & networks Heating & cooling



Equipment repair Business  income losses Lost or damaged inventory & materials

Related topics & resources

Family Shopping

What is Personal Liability coverage?

House Painting

Commercial Umbrella insurance


Ready to get started? Call 888-389-3900

bottom of page