What is an equipment breakdown claim?
An equipment breakdown claim is similar to other business interruption claims. Just like the restaurant I discussed in a previous video, a restaurant owner may have equipment that’s used to cook the food or keep it cold. If for whatever reason, these pieces of equipment have issues, they have to be replaced. The equipment breakdown coverage will cover you for that. Let’s say you’re a manufacturer, you have a factory, and you have a major piece of equipment that produces boxes and all of a sudden it is not working, you have to replace it. So that equipment breakdown coverage should help you in those situations. Now, your commercial property damage policy should cover you for this. But if it doesn’t you can purchase it separately. If you’re unsure, make sure to call your insurance agent and make sure you have the missing coverage you need for business equipment breakdown.