Equipment Breakdown, also known as Boiler and Machinery Insurance provides coverage against the sudden loss or breakdown of machinery or equipment. These include electrical systems, refrigeration and air conditioning systems, mechanical equipment, modern office equipment such as computers in addition to heating systems your company uses. It is designed to reimburse you for property damage like water for example, and business interruption losses which can be linked as a result of the accident damage.

If your production depends on a machine or a piece of equipment you should have it insured. If there is a potential for loss of income, incurring extra expenses, such as utility services, or consequential loss such as spoilage, these can be covered through endorsements.

Also see Business Interruption.