Is equipment breakdown coverage included in commercial property insurance?

Equipment breakdown coverage is not typically included in standard commercial property insurance policies. While commercial property insurance provides coverage for property damage resulting from covered perils like fires or storms, it may not cover damage or breakdowns caused by equipment malfunctions, electrical failures, or mechanical issues.

To protect against losses related to equipment breakdowns, businesses can purchase a separate equipment breakdown insurance policy, often referred to as "boiler and machinery insurance." This coverage is designed to specifically address the costs associated with repairing or replacing essential equipment and machinery due to mechanical breakdown, electrical failures, or other similar issues.

Equipment breakdown insurance can be crucial for businesses that rely heavily on machinery and equipment for their operations, such as manufacturing plants, hospitals, data centers, and more. It helps mitigate the financial impact of unexpected equipment failures and can cover expenses like repair or replacement costs, business interruption losses, and even inspection and maintenance costs to prevent future breakdowns.

In summary, equipment breakdown coverage is not automatically included in commercial property insurance and requires a separate policy to ensure that businesses are adequately protected against losses resulting from equipment failures or breakdowns.