Pages Navigation Menu


Commercial Equipment Breakdown

Why do you need equipment breakdown insurance? When equipment breaks down, your business can come to a halt or be seriously hampered. It’s a costly risk every type of business, institution, and municipality faces, yet most standard property policies exclude this coverage.

Rely On Our Coverage

Equipment Breakdown Coverage pays for physical damage to equipment caused by mechanical and electrical breakdown. It can also cover business income or spoilage losses due to an equipment breakdown and your extra expenses to limit the equipment loss or speed up repairs.

The coverage protects against covered losses caused by:

  • Short circuit
  • Electrical arcing
  • Power surges
  • Mechanical breakdown
  • Motor burnout
  • Boiler damage
  • Operator error

Common Causes

Electrical Distribution System
Lost power often means lost income and customers. A short circuit in one part of an electrical distribution system can easily spread to other parts because panels, circuit breakers, and cables are interconnected. A loose connection, dust, or high humidity is all it takes.

Heating and Cooling Systems
Heating and cooling is essential to employee productivity. Yet HVAC breakdowns are common and boilers and pressure vessels that distribute heat and hot water are vulnerable. Income is often lost while this equipment is repaired or replaced.

Telephone Systems
When the phones go down, so does a business. Phone circuitry is easily affected by voltage spikes, heat, vibration, and moisture. It doesn’t take much.

Today, what business doesn’t depend on computers? Yet the highly sensitive and fragile technology that computers rely on is highly susceptible to damage.

What costs more – refrigeration system repairs or the damaged perishables? Add replacement refrigerant to the equation and the expenses escalate.

Better Coverage

Our equipment breakdown coverage covers more than the equipment itself. In addition to repairs and replacement, our broad programs can pay for business income, extra expense, expediting expense, perishable goods, and more.

With Pekin Insurance’s Commercial Equipment Breakdown coverage, you will have coverage when you need it most, along with claim service that will go Beyond the expected.®

Call Toll-Free 1-800-322-0160