If you're like most business owners, you carry Commercial Property Insurance because it protects your physical assets like your building, furniture, and inventory from things like fire, theft, or natural disasters. But what happens when a vital piece of equipment suddenly fails because of internal issues, like a power surge, mechanical failure, or operator error?
That's where Equipment Breakdown Coverage steps in. This policy can be the difference between a quick fix and a major financial setback, and should be part of your Commercial Insurance portfolio.
In today's blog, learn the basics of this type of coverage, how it differs from standard Commercial Property Insurance, and if your industry would benefit from this policy. Also discover how Aegis Insurance & Financial Services can help you get the coverage you need to protect your business future.
What is Equipment Breakdown Coverage?
Equipment Breakdown Coverage is designed to cover repair or replacement costs when your key business equipment fails due to internal issues, and not external events like theft, fire, or weather. It covers a wide range of equipment, including electrical, mechanical, and refrigeration systems, as well as communication systems, computers, and network systems.
It can also help cover additional losses like:
• Business income lost during downtime
• Spoiled inventory (especially in food service or manufacturing)
• Temporary relocation expenses
In short, it keeps your business running when the machines you rely on stop working.
How is It Different from Commercial Property Insurance?
Here's the key difference:
Commercial Property Insurance covers damage to equipment and property caused by external events, such as fire, storms, theft, vandalism, etc.
Equipment Breakdown Coverage differs by covering losses caused by internal issues, which can include things like mechanical failures, electrical short circuits, or pressure system breakdowns.
For example, if a fire damages your refrigeration system, your Commercial Property Insurance will cover it. But if a power surge damages the compressor in your refrigeration system, then Equipment Breakdown Coverage would cover that repair or replacement, as well as food spoilage that might result from the loss.
These two coverages work best together to protect your equipment from both external and internal risks that your business may face.
Who Needs Equipment Breakdown Coverage?
Pretty much any business that relies on electrical, mechanical, or pressurized systems can benefit from this coverage, but it's especially critical in industries where equipment failure equals major downtime or lost product.
The industries that benefit most from Equipment Breakdown Coverage include:
• Restaurants & Food Services: If commercial refrigerators, freezers, ovens, HVAC systems break, your restaurant loses both time and inventory.
• Manufacturing: With assembly lines, specialized machinery, boilers, and more, your whole operation might come to a stop if a single part fails.
• Healthcare & Dental Offices: Any equipment failure with imaging machines, sterilizers, or computer systems is both costly and may affect patient care.
• Retail & Grocery Stores: POS systems, refrigeration units, and backup generators are essential to protecting your retail inventory and operations.
• Data Centers & IT Businesses: Server rooms, climate control systems, and power supply infrastructure are highly sensitive to internal breakdowns.
If your business depends on key equipment, tools, or machinery to get the job done, then you need Commercial Insurance coverage that helps you make a faster recovery and shortens your downtime.
Why You Shouldn't Overlook It
Internal equipment failures happen more often than you might think, and when they do, the costs can pile up fast. Between emergency repairs, interruptions to your business operations, and product or inventory losses, even a short breakdown can lead to a big bill.
With Equipment Breakdown Coverage, you're not stuck footing that bill alone. It's a smart, affordable way to shield your business from the high costs of unexpected mechanical or electrical issues.
Partner with Aegis Insurance & Financial Services
At Aegis Insurance & Financial Services, we understand how essential your equipment is to your company's success. That's why we offer Equipment Breakdown Coverage that's tailored to your industry, your operations, and your budget.
Whether you're running a restaurant, a retail store, a repair shop, or a dental clinic, we'll help you protect the tools and systems that keep your business running.
Contact Aegis Insurance & Financial Services today at 713-850-7622 to get started with Equipment Breakdown Coverage and keep your business covered from the inside out.