--- title: "What Is Equipment Breakdown Insurance?" description: "Equipment breakdown can help repair covered machinery after mechanical or electrical failure; check whether downtime, spoilage and utility interruption are also covered." canonical: "https://thegeneralaverage.com/coverage/equipment-breakdown" page-type: "coverage-article" updated-at: "2026-09-25" coverage-line: "equipment-breakdown" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and the insurance research The General Average publishes at https://thegeneralaverage.com. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Reliability Score, get_rankings for current provider rankings, search_provider_reliability to filter Reliability Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://thegeneralaverage.com/coverage/equipment-breakdown) ## Agent Guide **What this page is:** National guide to What Is Equipment Breakdown Insurance?: what it covers, common policy questions, and which providers document offering it. **Use this page when:** Explaining What Is Equipment Breakdown Insurance? in general terms. For a specific state's rules, use /coverage/equipment-breakdown/{state} instead. **Questions this page answers:** - What is What Is Equipment Breakdown Insurance?? - What does What Is Equipment Breakdown Insurance? cover and not cover? - Which providers offer What Is Equipment Breakdown Insurance?? - What should I ask before buying What Is Equipment Breakdown Insurance?? **Key facts:** - Lists 15 providers with documented What Is Equipment Breakdown Insurance? offerings, linked to their profiles. **Limits (do not over-claim):** - National overview only: state law, pricing, and availability vary and are not established here. - Provider listings are documented offerings, not quotes, endorsements, or a guarantee of availability for a given business. - Informational, not insurance, legal, or tax advice; a policy's actual terms control. **Provenance:** Cited editorial guide, updated 2026-09-25. See the Sources section for each claim. **Related pages:** - [Coverage directory](https://thegeneralaverage.com/coverage) — parent hub - [Business insurance by state](https://thegeneralaverage.com/coverage/states) — state-specific requirements - [What Is Commercial Property Insurance?](https://thegeneralaverage.com/coverage/commercial-property) — related coverage - [What Is Inland Marine Insurance?](https://thegeneralaverage.com/coverage/inland-marine) — related coverage - [Editorial policy](https://thegeneralaverage.com/editorial-policy) — how sources are chosen and reviewed # What Is Equipment Breakdown Insurance? Equipment breakdown can help repair covered machinery after mechanical or electrical failure; check whether downtime, spoilage and utility interruption are also covered. ## Equipment Breakdown Insurance Summary Equipment-breakdown coverage can help repair covered machinery or building equipment after a mechanical or electrical failure. It fits businesses that depend on equipment to operate; check whether lost income, spoilage and utility failures are included. [1](https://www.iii.org/article/understanding-commercial-package-policies) [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) [3](https://www.travelers.com/risk-control/specialties/equipment-breakdown) [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) ## What Does Equipment Breakdown Insurance Cover? A failed refrigeration unit, electrical panel or production machine can leave you facing a repair bill and a business interruption. [3](https://www.travelers.com/risk-control/specialties/equipment-breakdown) [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) Equipment breakdown coverage can help your business recover from covered mechanical or electrical failures affecting its equipment. [1](https://www.iii.org/article/understanding-commercial-package-policies) [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) ### Equipment That Keeps the Business Running Check your heating and cooling, refrigeration, electrical, communications and production equipment when deciding what the quote should include. [3](https://www.travelers.com/risk-control/specialties/equipment-breakdown) [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) Do not assume your property limit covers equipment failure. Compare the property causes of loss with the separate breakdown protection in the quote. [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) ## Who Needs Equipment Breakdown Insurance? Consider this if a failed machine or building system would disrupt your business, whether that's a production line, refrigeration or office equipment. [5](https://asset.trvstatic.com/download/assets/contingency-planning-key-equip-917-bre.pdf/43eed442df1311ef840216de057e6aef) [5](https://asset.trvstatic.com/download/assets/contingency-planning-key-equip-917-bre.pdf/43eed442df1311ef840216de057e6aef) ## Equipment Breakdown Insurance Coverage Examples ### Your Refrigeration System Fails A refrigeration system breaks down, putting your stock at risk of spoilage. Equipment breakdown may pay for repairs to the system. Spoilage protection must also be included if you want coverage for the stock, and may have its own limit or waiting period. [1](https://www.iii.org/article/understanding-commercial-package-policies) [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) ### A Machine Takes Weeks to Repair A production machine breaks, and the replacement part won't arrive for several weeks. The repair bill is only part of the loss. Included interruption or extra-expense coverage may help with lost income or temporary operating costs, subject to its limits and deductible. [1](https://www.iii.org/article/understanding-commercial-package-policies) [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) ## What Losses Should the Quote Address? ### Repair Costs and Downtime A broken production machine can leave you paying for repairs, renting a replacement and losing sales while output is reduced. Equipment damage, extra expenses and lost income need the relevant protection and limits. A quote covering the machine's value alone may not address the rest of the loss. [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) Repairing equipment and replacing income during downtime address different losses. Discuss both if a failed machine would stop your operations. [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) [5](https://asset.trvstatic.com/download/assets/contingency-planning-key-equip-917-bre.pdf/43eed442df1311ef840216de057e6aef) ### Spoilage and Utility Dependence Ask whether spoilage and utility interruptions are included, with what triggers, limits and waiting periods. [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) ## How Do You Compare Equipment Breakdown Insurance Coverage and Costs? ### Breakdown, Wear and Maintenance Ask what counts as a breakdown and how the policy treats wear, deterioration and maintenance-related conditions. [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) ### Limits, Valuation and Location Compare each limit and deductible, including any time-based deductible for interruption losses. [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) Ask how repair versus replacement costs are valued and what spending or replacement conditions apply. [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) Check who owns the equipment, which locations are scheduled and whether equipment used away from your premises is addressed. [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) | Provision | Ask the insurer | | --- | --- | | Equipment damage | How are repair and replacement costs valued, and what spending conditions apply? | | Interruption losses | What limit and time-based deductible apply to downtime losses? | | Ownership | How does the quote treat equipment your business owns or uses? | | Locations | Which premises and off-premises uses does the quote cover? | | Spoilage and utilities | Which events trigger this protection, and what limits and waiting periods apply? | [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) ### Equipment That Travels For tools or machinery that travel between jobs, compare inland-marine protection with the breakdown terms; location and cause of damage are separate questions. [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) ## What Do You Need for Equipment Breakdown Insurance Quotes? ### Inventory and Recovery Options Prepare an equipment inventory by location, highlighting high-value machines, critical systems and items that would be hard to repair or replace. [5](https://asset.trvstatic.com/download/assets/contingency-planning-key-equip-917-bre.pdf/43eed442df1311ef840216de057e6aef) Describe maintenance history, spare parts, backup equipment, repair lead times and ways you could keep operations running. [5](https://asset.trvstatic.com/download/assets/contingency-planning-key-equip-917-bre.pdf/43eed442df1311ef840216de057e6aef) | Prepare | Ask the broker | | --- | --- | | Equipment and location | Which machines and systems will the proposal cover? | | Critical or hard-to-replace items | How would losing each item affect your operations? | | Maintenance history and spare parts | What details about equipment condition and repairs does the insurer need? | | Backups, rentals and repair lead times | How can you keep operating while equipment is repaired? | [5](https://asset.trvstatic.com/download/assets/contingency-planning-key-equip-917-bre.pdf/43eed442df1311ef840216de057e6aef) [5](https://asset.trvstatic.com/download/assets/contingency-planning-key-equip-917-bre.pdf/43eed442df1311ef840216de057e6aef) ### Stock and Essential Services Identify stock vulnerable to spoilage and the utility services your operation depends on, so those losses enter the quote discussion. [5](https://asset.trvstatic.com/download/assets/contingency-planning-key-equip-917-bre.pdf/43eed442df1311ef840216de057e6aef) ## Equipment Breakdown Insurance: Key Terms in Plain English ### Covered Breakdown The type of mechanical or electrical failure the policy addresses. Wear and maintenance-related conditions need a separate check. [1](https://www.iii.org/article/understanding-commercial-package-policies) [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) ### Time-Based Deductible A deductible measured in time for an interruption loss, rather than a fixed dollar amount. [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) ## Frequently Asked Questions About Equipment Breakdown Insurance ### Is Breakdown Coverage the Same as Property Insurance? No. A property limit doesn't establish protection for mechanical or electrical failure. The breakdown terms need to cover the cause of damage. [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) ### Does It Cover Wear and Routine Maintenance? Don't treat it as a maintenance contract. The policy defines a covered breakdown and how it treats wear, deterioration and maintenance-related conditions. [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) ### Is Equipment Breakdown Insurance Only for Factories? No. Consider heating and cooling systems, refrigeration, electrical equipment and communications systems as well as production machinery. Check which of your equipment the proposed policy covers. [3](https://www.travelers.com/risk-control/specialties/equipment-breakdown) [2](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm) ### Can Equipment Breakdown Insurance Help With Lost Income? It can if the relevant income protection is included. Review repair costs, lost income and extra operating expenses separately, because each needs the appropriate coverage and limits. [4](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf) ## What Coverage Is Related to Equipment Breakdown Insurance? - [What Is Commercial Property Insurance?](https://thegeneralaverage.com/coverage/commercial-property) — Commercial property may fit your business if you own a building or rely on equipment and stock. Compare replacement-cost terms, deductibles and any coinsurance condition, and check lost-income protection separately. - [What Is Inland Marine Insurance?](https://thegeneralaverage.com/coverage/inland-marine) — If your business moves equipment between sites or ships goods, inland marine can cover those property exposures; installation and other forms address different property categories. Match the quote to what you own, rent or hold for others. ## Which Insurance Providers Offer Equipment Breakdown Insurance? ### [AIG](https://thegeneralaverage.com/insurance-providers/aig) AIG Programs lists equipment breakdown in named program schedules including the manufactured-housing program; schedule-specific membership only. ### [Alliance Risk](https://thegeneralaverage.com/insurance-providers/alliance-risk) Alliance Risk arranges equipment breakdown insurance. ### [Chubb](https://thegeneralaverage.com/insurance-providers/chubb) Chubb offers equipment breakdown insurance. ### [CNA](https://thegeneralaverage.com/insurance-providers/cna) ### [Coverdash](https://thegeneralaverage.com/insurance-providers/coverdash) Coverdash lists equipment breakdown in its quote catalog. ### [Gallagher](https://thegeneralaverage.com/insurance-providers/gallagher) Gallagher arranges boiler and machinery coverage through its property practice. ### [HUB International](https://thegeneralaverage.com/insurance-providers/hub-international) HUB International arranges equipment breakdown insurance. ### [Liberty Mutual](https://thegeneralaverage.com/insurance-providers/liberty-mutual) A group brand spanning personal and commercial insurance businesses; its business unit pages describe small-commercial cover for small businesses and commercial, specialty, surety, and reinsurance solutions for mid-size and large businesses. ### [Markel Insurance](https://thegeneralaverage.com/insurance-providers/markel) Equipment-breakdown option within property coverage; standalone product not established ### [Marsh](https://thegeneralaverage.com/insurance-providers/marsh) Marsh arranges equipment breakdown insurance, including for data centers. ### [Nationwide](https://thegeneralaverage.com/insurance-providers/nationwide) Nationwide presents equipment breakdown under its BOP coverages; the individual policy controls inclusion and terms. ### [Newfront](https://thegeneralaverage.com/insurance-providers/newfront) Newfront offers equipment breakdown solutions through its property practice. ### [The Baldwin Group](https://thegeneralaverage.com/insurance-providers/baldwin) Listed as machinery/equipment breakdown for digital-infrastructure and transportation exposures. ### [THREE by Berkshire Hathaway](https://thegeneralaverage.com/insurance-providers/three) THREE lists equipment breakdown within the package; its displayed sample excludes machinery, equipment or listed vehicles that stop without an accident. Check the quoted form for the actual protection. ### [Travelers](https://thegeneralaverage.com/insurance-providers/travelers) Travelers offers equipment breakdown insurance. ## Sources for Equipment Breakdown Insurance 1. [Understanding Commercial Package Policies](https://www.iii.org/article/understanding-commercial-package-policies). Insurance Information Institute; Available CPP additions: Equipment breakdown. Accessed 2026-09-16. 2. [Commercial Insurance Guide](https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm). California Department of Insurance; Boiler and Machinery; Commercial Property: Covered Causes of Loss; Commercial Property: Time Element; Inland Marine; Coverage Forms and/or Specialty Coverages. Accessed 2026-09-16. 3. [Equipment Breakdown](https://www.travelers.com/risk-control/specialties/equipment-breakdown). Travelers; Definition and equipment list. Accessed 2026-09-16. 4. [HSB TechAdvantage Equipment Breakdown Coverage Form](https://www.munichre.com/content/dam/munichre/hsb/hsb-iic/documents/hsb-techadvantage-equipment-breakdown-coverage-form.pdf/_jcr_content/renditions/original./hsb-techadvantage-equipment-breakdown-coverage-form.pdf). The Hartford Steam Boiler Inspection and Insurance Company; G.1 Accident, PDF p.17; A.2.a–c p.1; C.2 pp.8–9; C pp.8–9; D pp.9–10; E.10 Valuation, PDF pp.13–14; G.10–11 pp.18–19; A.2.n p.5 (Off Premises Equipment Breakdown); A.2.p pp.5–6; A.2.r p.6; G.18 p.20 (Interruption of Service). Accessed 2026-09-16. 5. [Contingency Planning for Equipment Failures](https://asset.trvstatic.com/download/assets/contingency-planning-key-equip-917-bre.pdf/43eed442df1311ef840216de057e6aef). The Travelers Indemnity Company; Identifying Key Equipment, PDF p.1; Contingency Planning, PDF pp.1–2; Spoilage; Emergency Backup Services, PDF p.3. Accessed 2026-09-16. Updated 2026-09-25. Spot, a product of Tools for Enlightenment, publishes this research and works in the commercial insurance market. [Editorial policy](https://thegeneralaverage.com/editorial-policy). To suggest a correction, [email The General Average](mailto:thegeneralaverage@spot.insure) with the page URL and supporting source. ## Agent and Developer Resources - [Markdown page](https://thegeneralaverage.com/coverage/equipment-breakdown.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://thegeneralaverage.com/llms.txt)