Equipment Breakdown Insurance for Machinery and Systems

Restaurants, hotels, food manufacturers, wholesalers with cold storage, medical offices with imaging or autoclaves, and light manufacturers are the accounts that feel this claim. We place the coverage inside a BOP when the limit is honest, and as a companion to monoline property when it is not.

Covered equipment typically includes boilers and pressure vessels, electrical panels and transformers, refrigeration and HVAC, production machinery, computers and networks, and diagnostic or production electronics. The form should also address spoilage from loss of refrigeration, extra expense to rent a chiller, and business income while the line is down.

Property policies cover fire that starts in a machine. They do not, on their own, cover the machine that destroyed itself. That distinction is the entire reason this line exists. We put it in writing on the proposal so a partner does not discover it at 2 a.m. in a walk-in.

Limits should follow the most expensive single machine or the longest plausible downtime, whichever is larger. A modest automatic BOP include will not replace a CNC cell or a hotel's main chiller. We schedule what you actually have.

• Mechanical and electrical breakdown Sudden failure of covered equipment, not gradual wear you were supposed to maintain.
• Spoilage Product lost because refrigeration or climate control failed after a covered breakdown.
• Business income and extra expense The shutdown and the rental of temporary equipment to stay open.
• Diagnostic and production electronics Medical, dental, and shop-floor systems that a generic contents limit undervalues.