Is coverage available for equipment breakdown during construction?

Builders Risk Insurance typically covers damage or loss to a structure under construction or renovation as well as the materials being used for the project. Equipment and machinery are generally covered under a contractor’s Inland Marine or Commercial Property policy. Because equipment breakdown is often associated with mechanical or electrical failures rather than external perils it is generally not a standard part of a Builders Risk policy. To address equipment breakdown, you would typically need a separate insurance policy called Equipment Breakdown, also known as Boiler and Machinery Insurance.

Equipment Breakdown Insurance typically provides coverage for the following types of losses:

Mechanical breakdown: Failures in machinery, gears, motors, or other mechanical parts.

Electrical breakdown: Failures in electrical equipment, control panels, or circuits.

Pressure system breakdown: Damage or failure of boilers or pressure vessels.

Explosion: Coverage for explosions of covered equipment.

Loss of income: Compensation for income loss due to equipment breakdown.

While Builders Risk Insurance is essential for protecting against property damage and losses due to external perils, Equipment Breakdown Insurance is tailored to safeguard equipment and machinery from internal failures and malfunctions. As well as compensate for any loss of income do to any equipment breakdown.