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Equipment Breakdown

Why purchase Equipment Breakdown Insurance?

Your business has equipment that’s critical and you depend on it to keep your business going.

AC&D’s Equipment Breakdown Insurance policies provide broad coverage for the equipment you rely on every day:

  • Telephone Systems
  • Electronic Equipment Including Computers
  • Heating and Cooling Systems
  • Refrigeration
  • Manufacturing Production Equipment

Highlights include:

  • Direct property loss — the cost to repair or replace the damaged equipment.
  • Costs associated with the time and labor to repair or replace the equipment.
  • Other expenses incurred to limit the loss or speed the business restoration.
  • The loss value of spoiled products or materials.
  • Business recovery expenses

Equipment Breakdown Insurance Covers More Than Just Repair Costs

Equipment Breakdown insurance helps protect you from the costs associated with losses to your facility’s equipment.
It pays for:

  • Direct property loss – the cost to repair or replace the damaged equipment
  • Costs associated with the time and labor to repair or replace the equipment
  • Other expenses incurred to limit the loss or speed the business restoration
  • The loss value of spoiled products or materials
  • Business recovery expenses

In short, Equipment Breakdown insurance covers the physical damage – and the financial damage – that stems from an insured equipment failure.

  • Protection Against Damage Caused by:
    • Short circuits/electrical arcing Power surges
    • Mechanical breakdown
    • Motor burnout
    • Boiler damage
    • Operator error

Equipment Breakdown Insurance Covers Many Types of Equipment

Electrical Distribution Systems

Maximum power uptime is important for any business, institution or municipality. Loss of power can mean loss of income and customers. Since the panels, circuit breakers and cables in your power distribution are all interconnected, a short circuit in one part can spread instantly to other parts of the system.

Heating and Cooling Systems

Today’s HVAC systems are more complex and costly to repair. If the climate becomes inhospitable due to lack of heating or air conditioning, there is loss of productivity, and loss of income if you service customers on site.

Telephone Systems

If your phone goes down, so does your business. Phones have a circuitry that is easily affected by voltage spikes, heat, vibration and moisture.

Electronic Equipment

Whether you’re using computers to design and manufacture high technology components, track productivity data or keep the books straight, computers rely on highly sensitive and fragile technologies.


If your business depends on refrigeration, a breakdown can cause more than the loss of a major equipment
investment, it also could mean the loss of costly perishable goods and business income.

Typical Losses

The following are examples of real losses and the coverage provided by Equipment Breakdown Insurance:

  • Power surge in an office building is transmitted through a LAN damaging 200 computers.
    • Direct Property Loss: $ 100,000
      Business Interruption Loss: $ 24,672
      Total Paid Loss: $ 124,672
  • A plug in a hot water meter failed, damaging the boiler, hot water heater and electrical panels.
    • Total Paid Loss: $ 65,630
  • Power surge in a restaurant damages an air conditioning compressor, ice machines, microwaves and other appliances.
    • Total Paid Loss: $ 60,467
  • Piping of air conditioning system leaks water into telephone switching equipment. Shorts out equipment.
    • Direct Property Loss: $ 89,859
      Business Interruption Loss: $ 42,890
      Total Paid Loss $ 132,749

Why should I choose AC&D for my Equipment Breakdown Insurance?

At AC&D we represent we have specialized programs for Equipment Breakdown Insurance. We can provide coverage you with the coverage you need quickly and at a reduced cost.

How much does Equipment Breakdown Insurance cost?

The cost of Equipment Breakdown Insurance differs based on the scope of your operations and types/limits of property insured. Coverage for a small business can start as low as $100. Contact Us today to arrange a no-obligation review of your Equipment Breakdown Insurance needs from one of our expert brokers or Request a Quote.

Complete as much of this form as you like. If you would prefer to have an application sent by email or speak with a qualified broker directly, please complete the contact information only and click the submit button at the bottom of the form.

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