Equipment Breakdown Coverage in Massachusetts

What is Equipment Breakdown Coverage?

Many businesses in Massachusetts use essential equipment on a regular basis, and they’d be in trouble if this equipment broke down. Equipment breakdown coverage may provide financial assistance in the event that a covered piece of essential equipment malfunctions and brings operations to a standstill.

Equipment breakdown coverage is a specialized form of commercial insurance. Instead of protecting equipment against perils like fire, wind and theft, policies offer protection from certain possible breakdowns. Few other insurance policies offer this kind of protection.

What Businesses in Massachusetts Need an Equipment Breakdown Policy?

Many businesses in Massachusetts that rely on essential equipment could benefit from the protections afforded by an equipment breakdown policy. In short, almost any business that couldn't operate without a particular piece of equipment might want this coverage. The following are a few specific examples of businesses that may want equipment covered:

Coffee Roasters that need a roaster for producing batches of coffee
Retailers that need a point-of-sale system for checking out customers
Manufacturers that have specialized production machinery
Apartment buildings that need working furnaces and air conditioners
Restaurants that need refrigerators, freezers, ovens and stoves
Warehouses that use specialized inventory management systems

What Expenses Are Covered by an Equipment Breakdown Policy?

Exactly what a particular equipment breakdown policy covers when there’s a valid claim is determined by that policy’s terms and conditions, and coverages often vary from one policy to another. Depending on a policy's terms, it might help pay for:

Repair costs associated with fixing the equipment
After-hours or emergency call fees for repairs during non-business hours
Labor costs if employees complete the repair
Inventory and/or supplies that are lost because of the breakdown
Revenue lost because of the breakdown

What Breakdowns Are Covered by an Equipment Breakdown Policy?

What sorts of breakdowns a particular equipment breakdown policy are also determined by the policy’s terms and conditions. An insurance agent who specializes in these policies can explain a specific policy’s protections, which may be nuanced and complex.

Are Equipment and Breakdown Policies Available Through Package Policies?

Equipment and breakdown protection is widely available through both stand-alone and package policies. The coverage can be added to many commercial package policies.

Are Equipment Breakdown Policies the Same as Boiler and Machinery Policies?

Although both kinds of policies have many points of similarity, the coverage afforded by boiler and machinery policies frequently isn’t as robust as what equipment breakdown policies provide. Boiler and machinery policies have historically covered just what their name suggests -- boilers and similarly machinery. Equipment breakdown policies often have their protections broadened to cover a wider array of equipment.

As businesses have come to rely on a wider variety of equipment, equipment breakdown policies have generally become more useful and popular. Boiler and machinery policies were common when most businesses used these primarily, but today many businesses instead select equipment breakdown policies.

Any business that’s unsure which of the two options is more suitable for their situation should seek the guidance of an insurance agent who specializes in equipment breakdown policies and can provide informed advice.

How Can Businesses in Massachusetts Get Equipment Breakdown Coverage?

For help finding equipment breakdown coverage, contact the independent insurance agents at Roger Butler Insurance. Our agents have helped many Massachusetts businesses with this coverage, and we’re ready to assist your business. Because we’re an independent insurance agency, we have the freedom to compare equipment breakdown policies from multiple insurance companies so that your business gets the best available option.