In today’s world, businesses have an increased reliance on equipment for critical operations. Equipment breakdowns can interrupt operations, and a small business can be severely impacted by a breakdown. Your business insurance policy covers a wide array of perils, but what happens when your commercial equipment breaks down?
What is Equipment Breakdown Protection?
Equipment Breakdown Protection is a low-cost coverage enhancement option to your policy that helps repair or replace important systems due to covered mechanical or electrical breakdown.
What does Equipment Breakdown Cover?
While Equipment Breakdown Protection isn’t intended to cover wear-and-tear, rust or corrosion issues that occur over time, it can provide coverage for sudden mechanical breakdowns or electrical failures. The list of covered equipment is extensive, including, but not limited to:
- Air Conditioning, Heating Systems and Refrigeration
- Mechanical Equipment Including Elevators, Escalators and Cooking Equipment
- Processing Equipment (when permanently installed)
Why is Equipment Breakdown Protection Important?
Within a standard Property or Business Owner Insurance Policy, there are major equipment, mechanical and electrical, breakdown exclusions. Without Equipment Breakdown coverage, you may have a gap in protection that could result in a large loss for a business or a potential permanent shutdown.
Unexpected breakdowns can cost thousands to fix. Equipment Breakdown losses aren’t just restricted to the cost of equipment repair or replacement. Businesses can also suffer potential loss of profits during the downtime. The cost to bring a business back can be significant.
Virtually all businesses have equipment breakdown exposures and need equipment breakdown coverage.
Contact your local Alfa® agent today to add Commercial Equipment Breakdown Protection to your policy!