Equipment / Systems Breakdown Insurance
Guardian Insurance Agency
When critical equipment fails, this coverage keeps you running.
Commercial property insurance covers external perils fire, wind, flood. It usually doesn’t cover mechanical or electrical breakdown (short circuit, burnout, rupture, or operator error). Equipment/Systems Breakdown Insurance fills that gap, paying to repair or replace failed equipment and helping cover business income and extra expense while you get back online.
What this policy covers (in plain terms)
Coverage varies by carrier and form; we’ll tailor limits and endorsements to your operation.
- Sudden & accidental breakdown of covered equipment:
- Electrical: switchgear, transformers, panels, motors, UPS, drives, generators.
- Mechanical: compressors, pumps, production machinery, elevators, conveyors.
- Pressure: boilers, pressure vessels, HVAC chillers.
- Refrigeration: coolers, freezers, walk‑ins (including ammonia systems, form-dependent).
- Direct damage: repair or replacement of the failed equipment.
- Expediting expense: rush shipping, temporary rentals, overtime labor to speed repairs.
- Business income & extra expense: replace lost revenue; fund temporary solutions to resume operations.
- Spoilage: perishable goods after refrigeration or power equipment failure.
- Service interruption (time‑element): income loss when off‑premises utility equipment fails (endorsement).
Often called Equipment Breakdown, Boiler & Machinery, or Systems Breakdown, these different names, same mission: cover internal failures your property policy excludes.
Common covered systems
- HVAC: chillers, rooftop units, controls.
- Refrigeration: walk‑ins, reach‑ins, glycol systems.
- Production & process: mixers, fillers, presses, CNC.
- Building systems: elevators, fire pumps, sprinklers, lighting.
- Electrical: switchboards, transformers, generators, drives.
- Technology hardware: servers/network gear (physical damage only; software/data needs Cyber/EDP).
What’s usually not covered
Some exposures need separate policies or are excluded:
- Wear and tear, corrosion, rust, deterioration.
- Software‑only failures or malware (use Cyber / EDP forms).
- Flood, fire, theft damage (your Property policy responds).
- Employee injury (that’s Workers’ Comp).
- Autos and mobile equipment off premises (inland marine/equipment floater).
We’ll align Property, Cyber/EDP, Inland Marine, and Utility Service endorsements so there are no gaps.
Valuable options & endorsements
- Service interruption (property & time‑element) for utility equipment failure off‑site.
- Spoilage and contamination (food, pharma).
- Hazardous materials clean‑up (e.g., ammonia release).
- Brands & labels for consumer goods.
- Data restoration (limited) tied to covered physical damage.
- Ordinance or Law for code upgrades after replacement.
- Per‑location time deductibles and tailored waiting periods.
Why warranties aren’t enough
Manufacturer warranties are narrow: they rarely cover operator error, power surge, electrical arcing, expediting expense, spoiled stock, or lost income. Equipment Breakdown is built for real‑world failures and the costs around them.
What affects price
- Equipment mix and values (HVAC/refrigeration/process).
- Downtime exposure and perishable inventory.
- Maintenance practices and power quality (surge protection, PM logs).
- Claims history and selected limits/deductibles.
- Utility dependence (chillers, data centers, cold storage).
The Guardian Way
We inventory your critical systems, model downtime risk, and set realistic limits for direct damage, business income, and expediting. Then we add the service interruption, spoilage, and haz‑mat endorsements you’ll actually use so a breakdown doesn’t break the business.
Guardian Insurance Agency — Proper protection—prior to peril.
Call
+1 888 388 2864
Visit
1818 E 1st Street #530 Santa Ana CA 92705