Equipment Breakdown Insurance is surely one of the most misunderstood insurance coverages you can purchase for your company. Also known a by its original name Boiler & Machinery Insurance, or simply boiler insurance, Equipment Breakdown insurance coverage steps in and fills some distinctive voids found in most commercial property forms. Historically, boiler insurance was designed to cover the damage to exploding pressure vessels, a peril that was excluded under the standard insurance policy. Additionally, the coverage included inspection services, which was a loss control method that was effective in keeping losses down and keeping the product viable for the insurance carrier.
Today, Equipment Breakdown Insurance, as it is more commonly referred to as, covers loss due to "accident" and breakdown of everything from production machinery to computer equipment. Especially of note is the fact that it also covers electrical systems from power surges and electrical arcing, which is an all too common occurrence for businesses. Equipment breakdown insurance can also cover the resulting business interruption loss caused by a covered equipment breakdown loss.
In today's technology laden business world, the efficiencies of technology come with the risk of loss from common accidents and breakdowns that come with it. Thomas Gregory Associates helps clients understand the shortcomings of standard property forms when addressing equipment breakdown losses and demonstrates how equipment breakdown insurance effectively addresses them.