What does it cover?

• Physical damage to and financial loss from equipment breakdown.

• Covers the cost of repairing or replacing the damaged equipment and business losses incurred from the equipment not running.

• Equipment can include - HVAC systems, ovens, boilers and furnaces, refrigeration units, elevators and office equipment.

• Additional coverage/endorsements - business income, extra expense, consequential damage.

​​

How is premium cost dervied?

• Inspection

• Type and quantity of machinery

• Age of machinery

​

Claim Example

• A restaurant serves multiple kinds of meat and stores it in a meat freezer in the back.  When the owner comes in one morning he notices water leaking from the meat freezer.  When he looks closer he notices the freezer had broken down in the middle of the night and all the meat had thawed.  The restaurant owner now has to dispose of the thawed meat and can not serve it.  Losing a total of $1200 worth of meat.