What’s Covered in a Typical Equipment Breakdown Insurance Policy?

  1. Damage to “covered property” at the location named in the policy.
  2. Expediting expenses, to cover the costs of getting insured equipment operational as fast as possible. This may include expedited shipping and making temporary repairs.
  3. Business income and extra expense. Many of these policies will cover income lost, if due to a slowdown or stoppage caused by breakdown of the insured equipment. Extra expense coverage reimburses the insured for extra charges you incur to keep your business running while the equipment is not functioning, such as outsourcing or renting equipment. If your policy only lists extra expense coverage, it does not cover lost business income.
  4. Utility interruption. This extends the policy’s business income coverage to any utility service interruptions on the insured’s premises, rather than just losses or spoilage caused by a breakdown of equipment.
  5. Newly acquired premises, or premises unnamed in the policy. This coverage only applies if equipment at the new location is of the same type covered by the policy – and only for the number of days shown in the policy’s declaration page.
  6. Errors and omissions. This covers the insured for unintentional errors or omissions in describing or naming the insured property or location, and errors that cause cancellation of covered premises.
  7. Contingent business income and extra expense. This would apply business income and extra expense coverage to breakdowns of equipment at a named “contingent location” not owned or operated by the insured. It can also include coverages to meet special needs, such as spoilage coverage, “brand and label” coverage, hazardous substance cleanup, and more.

For more information on an equipment breakdown insurance policy, please either call or email Barker Phillips Jackson at: 417-887-3550 or ins@bpj.com.