The insurance known as equipment breakdown coverage or boiler and machinery insurance coverage is what’s called an endorsement, add-on, or rider. It extends the coverage of a business owners policy or BOP. Also called property & liability insurance, a BOP is a simplified approach to small business insurance that combines general liability and commercial property insurance.
Together, these two types of insurance can cover a wide range of claims, including:
With that as background, now we can answer the question of what is equipment breakdown/boiler & machinery insurance coverage? It provides payment for physical damage to covered property as a result of the unexpected breakdown of electrical systems, air conditioning and refrigeration systems, mechanical equipment, boilers and pressure vessels, and computers due to some type of accident like a component bursting, electrical arcing, explosion, etc. It does not cover items that stop working simply because they are old.
Equipment breakdown/boiler & machinery can pay for repairs or replacement, lost income while equipment is unusable, costs related to the time and labor required to make repairs, and the cost of food spoilage.
So, imagine that an air conditioner breaks down in the heat of summer and repairing it will take weeks due to some complication. In that scenario, you might need to temporarily relocate your operations. If so, equipment breakdown coverage may pay the associated costs.
Any business that has a physical, non-home location can benefit from property and liability insurance and other coverage. Equipment breakdown/boiler & machinery add-on insurance provides added security.
For example, if you own a sandwich shop and the power goes out due to a power surge, your business can be harmed in many ways. It may cause your website to go down, which means people can’t place orders online. Also, appliances in your kitchen can’t function, so you can’t prepare food. And your refrigerator won’t be able to keep perishable foods cold for long, so you may lose that inventory.
Without equipment breakdown/boiler & machinery coverage, one breakdown can create a large financial burden. Unfortunately, these types of major expenses are more than a business can bear in many instances.
Multiple factors go into calculating the cost of a business owners policy and any add-ons like this kind of boiler and machinery insurance. These include your location, business size, and claims history. However, you can get a fast, free online quote to determine your boiler and machinery insurance cost.
You can also buy a BOP and add-ons online, and your coverage takes effect promptly on the effective date chosen when you make the purchase. Plus, you have instant access to a Certificate of Insurance (COI).
Equipment breakdown/boiler and machinery add-on insurance is just one type of add-on for a business owners policy. Others include:
Yes, where you get your small business insurance is important. For one thing, you want to keep your insurance costs as low as possible while maintaining adequate coverage. At biBERK, we don’t use middlemen or brokers. As a result, we’re able to provide insurance directly to you for up to 20% less than other insurance companies.
The company behind your small business insurance and add-ons like equipment breakdown/boiler & machinery matters as well. biBERK is part of Warren Buffett's Berkshire Hathaway Insurance Group with millions of satisfied customers, more than 75 years of insurance experience, and $38 billion in paid claims in 2020. So, we’re a company with the expertise and financial resources businesses can rely on.
Our goal at biBERK is to make business insurance simple. And the good news for our customers is that we make it affordable at the same time.
Our licensed insurance experts are here to help if you need assistance. However, below are some of the business owners policy questions we’re asked most frequently.
Just about any kind of small business can benefit from BOP coverage. In particular, if your business owns or leases property, a BOP policy can be especially important since it combines commercial property insurance and general liability insurance.
The amount of property and liability insurance needed varies. Our insurance experts can help you determine the right coverage for your business.
We provide BOP coverage in many states. Check out our coverage map for details.