Many Massachusetts businesses rely on equipment that’s crucial to operations, and the malfunction of this equipment can have devastating consequences. For these businesses, equipment breakdown coverage may help remedy unexpected and emergency breakdowns of essential equipment.
Equipment breakdown coverage is a specialized commercial insurance that provides unique protections for essential equipment. Rather than guarding against perils such as theft and weather, the insurance typically protects against a range of malfunctions. Because this is such a specialized insurance, businesses should work with a knowledgeable agent when purchasing the coverage.
A wide range of Massachusetts businesses can benefit from the protections that equipment breakdown insurance affords, for many different businesses have essential equipment. The following are just a few examples of businesses that may consider this coverage and why they might want it:
In short, any businesses that would be unable to operate if specific equipment breakdown may be interested in this insurance. That’s doubly so if the equipment is expensive and/or time-consuming to fix.
The exact malfunctions that a particular equipment breakdown policy covers are determined by the language of that policy, and businesses should review any policy they’re considering with an experienced agent who can explain in detail what the policy covers.
In general, however, policies cover a variety of malfunctions -- including some that result from a business’ mistakes. With the right terms, a policy might cover:
Boiler and machinery coverage is often quite similar to equipment breakdown insurance, and some insurance companies are even transitioning their boiler and machinery coverage to exclusively equipment breakdown ones. Among insurers that offer both types of policies, though, there are a couple of subtle differences between the two.
Equipment breakdown tends to describe what equipment is covered in slightly more detail. This is largely because these policies cover more than boilers and machinery. The additional description helps define what other equipment a retail, food service, housing or other business might need protection.
Equipment breakdown also tends to have broader protections than boiler and machinery. Boiler and machinery has been around for a long time, and they often protect those two things. Equipment breakdown policies frequently have language that extends to other kinds of equipment.
Equipment breakdown insurance can be purchased on its own, or it’s often made available as part of a package policy. Many commercial package policies include the protection alongside a variety of other coverages options. Because businesses frequently need other coverages, purchasing a commercial package policy is a common way to acquire this coverage.
For assistance with equipment breakdown coverage and other insurance coverages, contact the independent insurance agents of Garrity Insurance. Our Massachusetts agency can help you review policies from different companies, and we have the expertise needed to help you select the one that affords what protections your business needs.