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Equipment Breakdown Insurance
What is Equipment Breakdown Insurance?
Equipment Breakdown Insurance is coverage for loss due to a mechanical or electrical breakdown of nearly any type of equipment, including photocopiers and computers. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown.
What does Equipment Breakdown Insurance cover?
Equipment breakdown insurance covers damages caused by covered internal forces, such as power surges, electrical shorts, mechanical breakdowns, motor burnout or operator error. Keep in mind that even though equipment breakdown insurance covers computers, it does not cover software.
What types of equipment does this coverage protect?
Equipment breakdown coverage is designed to protect various types of equipment, including:
- Computers and telephone equipment
- Mechanical system components
- Manufacturing equipment
- Refrigeration devices
- Heating and ventilation systems
- Elevators and escalators
- Security systems
- Retail point-of-sale devices
Please note that this coverage doesn’t require that the equipment breakdown resulted from a covered event in a property insurance policy, such as a fire. Coverage can kick in after an equipment malfunction.