Is there a difference between equipment breakdown coverage and contents coverage?

Yes. Contents coverage will protect your property, including premises, equipment, machinery, computers, etc, in cases of damage due to external factors such as fire, flood, water damage or weather-related events. Unfortunately, any spontaneous electrical or mechanical breakdowns or those caused by operator error will not be covered by your contents coverage policy. An equipment breakdown policy, however, may protect you in such cases.

Do I need equipment breakdown coverage if I already have warranty on my equipment?

Look carefully into your warranty policy. Whether your equipment came with warranty or you had to purchase it additionally, there are specific cases that warranty will or will not cover. Warranties often do not cover operator error, so if any damage to your equipment was caused due to the mistakes of an inexperienced employee, it would probably not be covered by your warranty.

What sort of equipment requires equipment breakdown insurance?

Equipment breakdown insurance may be applicable to a whole range of machinery and equipment that is crucial to business operations and may suffer from electrical or mechanical damage. A few examples include:

  1. Electrical
  2. Air Conditioning and Refrigeration
  3. Boiler and Pressure Vessel
  4. Computer and Communications
  5. Mechanical
  6. Renewable and Alternative Energy
  7. Production Systems