What Does Equipment Breakdown Insurance Cover?

Equipment breakdown poses a significant threat to the health and success of your company – that is, if your business is uninsured. Without equipment breakdown insurance, you may face repairs and product losses in the tens of thousands of dollars. But what exactly does your policy cover?

Repair or Replacement Costs

Your policy will cover the cost to repair or replace the equipment that malfunctioned. Some examples of this equipment might include:

  • Refrigerators
  • Wall ovens
  • AC units
  • Mixers
  • Beverage coolers
  • Flat top grilles
  • Electrical systems
  • Computers

Lost Income

Yes, your policy will compensate you for income lost during the time to get your business back up and running. Whether you are forced to shut down part of your business, reduce your services or hours, or closed doors entirely, you may face significant loss of income. You can rest easy knowing that you will be compensated by your policy.

Product Replacement

In case of equipment- or power failure, you may lose thousands of dollars worth of product which require refrigeration. Some of the most expensive products include:

  • Shellfish
  • Sirloin steaks
  • Time- and labor-consuming prepared dishes
  • Imported goods
  • Bread dough
  • Beer

Equipment failure can be a nightmare for any business owner. Thankfully, equipment breakdown insurance can help you mitigate or eliminate the financial stress and help you get back to business.