Mechanical Breakdown Insurance 101

Technology or specialized equipment is likely an important component of your daily business. From computers and printers to more complex manufacturing equipment, your company relies on these machines to keep your business running and growing. How can you protect these vital investments and secure your business? Let’s take a look at how Mechanical Breakdown Insurance can work for you.

What Does Mechanical Breakdown Insurance Cover?

Also known as Equipment Breakdown Insurance, this covers 5 different types of equipment:

  • business insurance orange countyMechanical. Includes motors, generators, engines, water pumps, elevators, and specialized manufacturing equipment. Mechanical equipment frequently breaks down due to vibration, misalignment, metal fatigue, operator error, or simply wears out.
  • Electrical. Includes electrical panels, cables and transformers. Power failures, fires, and even explosions can occur as a result of a shorted circuit or electrical arc.
  • Computers & communications equipment. Includes phone and voice mail systems, computers, security systems, and fire alarm systems. Significant damage can result from electrical fluctuations or power surges. These breakdowns run the risk of shutting down your production or your whole business for an extended period of time, resulting in heavy losses.
  • Air conditioning & refrigeration systems. Both kinds of equipment can be expensive to repair. Losing the use of either can mean serious losses for your business by driving away customers or spoiling vulnerable inventory.
  • Boilers & pressure equipment. Certain businesses depend entirely on the availability of heat or hot water. When this equipment breaks down or malfunctions, serious damage or financial loss can occur.


How Does It Work?

Mechanical Breakdown Insurance covers the repairs and/or replacement of equipment which has been damaged as a result of an insured incident covered by your specific policy. This coverage can apply to leased or rented equipment used by your business. Also, portable equipment that is used offsite or used by others in your custody can be covered by a customized policy.

This type of insurance also covers the costs associated with the time and labor required to repair or replace the equipment, financial losses resulting from the breakdown, and other expenses relating to keeping the business going without the equipment (like replacing spoiled foods).

Want to know how to protect your equipment and your business? ERM Insurance Brokers in Irvine, California can help!

Call (949) 222-0444 to learn more.