5 Cities Insurance
Equipment Breakdown Insurance for California Businesses
Equipment breakdown insurance covers the sudden failure of equipment — boilers, HVAC, electrical panels, refrigeration, and production machinery — from internal causes like electrical shorts or mechanical breakdown. It is commonly added to a BOP or property policy rather than purchased alone, and it complements property coverage that usually excludes internal breakdown.
Coverage line pending confirmation
This coverage line is shown for educational purposes. The agency is confirming its availability and authority before it is published as an offered line. Request a quote or ask a question and we will confirm what applies to your business.
Who may need this coverage
- Restaurants and hospitality businesses reliant on refrigeration and kitchens
- Manufacturers with production machinery
- Any business dependent on HVAC, electrical, or boiler systems
- Companies where downtime from equipment failure is costly
What it may cover
Coverage depends on policy wording, exclusions, limits, and underwriting. The following are commonly addressed, subject to the policy terms:
- Repair or replacement of damaged equipment
- Spoiled inventory from a covered breakdown, where endorsed
- Business income lost during repair, where endorsed
- Expediting costs to restore operations
Common exclusions and limitations
- Wear and tear and gradual deterioration
- Routine maintenance and parts subject to replacement schedules
- Damage from causes other than a covered breakdown
Relevant optional endorsements
- Spoilage coverage
- Business income and extra expense
- Utility interruption
Factors that may affect pricing
- Equipment type, age, and value
- Maintenance practices
- Business income exposure
- Selected limits and deductibles
Information typically needed to request a quote
- Equipment inventory and values
- Maintenance overview
- Business income exposure
- Prior breakdown losses
A realistic example
Situation: An electrical short knocks out a restaurant's refrigeration and spoils inventory.
How coverage may respond: Equipment breakdown can cover the repair and, with spoilage coverage, the lost inventory, subject to terms.
This coverage is typically included in or added to a broader policy (such as a BOP or commercial property) rather than purchased as a standalone product.
FAQ
Equipment Breakdown questions
Explore Equipment Breakdown for your business
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