Equipment Breakdown
Definition. Equipment Breakdown covers mechanical or electrical failure of business equipment — boilers, HVAC, computers, refrigeration.
Also known as: Boiler & Machinery, EB
Standard property policies exclude internal mechanical breakdown. Equipment Breakdown fills that gap, covering the equipment itself plus business income loss while equipment is being repaired. Critical for restaurants (walk-in refrigeration), manufacturers, hotels.
Example
Restaurant's walk-in cooler compressor fails over a weekend; $8,000 in spoiled inventory + $2,000 repair. Equipment Breakdown pays both.
Sources cited
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Reviewed by California-licensed Property & Casualty insurance agent
Jason Wootton (CA License #0I94454). Not insurance advice, an individual recommendation, or a solicitation in any state. Insurance regulations vary by state. For specific coverage decisions, consult a licensed insurance agent in your state.
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