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Equipment Breakdown Insurance

Keep your most valuable equipment safe with equipment breakdown insurance
  • Protect your business from a catastrophic breakdown of equipment 
  • Keep your most expensive equipment safe from mishaps 
  • Customize your plan based on your individual equipment needs 
Complete the form or call 1-800-463-8074 to speak with a licensed broker about Equipment Breakdown Insurance today.

Equipment Breakdown Insurance Ontario 

One of the best things about the modern world is the vast amount of technology we have. We now have the ability to do entirely new activities in our lives, and plenty of the things we've always been able to do can now be done more efficiently. While this has had an incredibly positive impact on our personal lives, businesses have also benefited greatly. 

It was only a few decades ago when wonders such as heating and air conditioning didn't exist, which impacts any business with a physical location, making their clients and employees much more comfortable. Massive refrigeration systems keep plenty of food at a cold enough temperature for long enough to be stored on-site and then sold to a customer. It also goes beyond temperature control, as many factories physically couldn't function without the machines helping with the production process. 

Almost every business is helped by some advanced tech, and many companies, such as factories, need their expensive equipment to function as intended. This seems fine until it isn't. Much of this technology's output can't be replaced by human labour, meaning that if it shuts down, and the company using it is in a tough situation. Luckily, there is equipment breakdown insurance, ready to be there for when a company faces the hardship of its most expensive equipment suffering accidental breakdowns. 

What Is Equipment Breakdown Insurance? 

As the name implies, equipment breakdown insurance, also called Boiler & Machinery insurance, is a form of business insurance designed to help pay for the replacement or repair of highly expensive types of machinery that have broken down. For example, you run a large factory that builds cars and you have manufacturing equipment that's vital to your company operations. While your employees are probably capable of performing some of the tasks done by your key equipment, they probably won't be nearly as efficient. Worse yet, your mechanical equipment probably performs some tasks that can't be done by your employees at all, meaning that your company can't produce its product anymore and will have to pay for costly repairs or replacement of equipment, likely making a massive dent in your finances. 

If you have equipment breakdown insurance, your insurance policy could cover the cost of repairs for or replacement of your insured equipment. This will give you peace of mind that you are covered even in a worst-case scenario. 

Who Needs Equipment Breakdown Insurance? 

Anyone who runs a company that uses expensive business equipment would benefit from taking advantage of equipment breakdown insurance. While a single laptop or telephone likely isn't worth claiming for, there are machines out there that cost tens of thousands of dollars and are needed for a company to keep its business running. Losing one of these devices because of permanent damage caused by a power outage or a simple mechanical breakdown can harm a business, possibly causing it to shut down temporarily. The costs of repairing or replacing the machinery might be significant enough to slow down or entirely stop a business' growth. Equipment breakdown coverage can protect many categories of equipment that are valuable for different reasons. 

What Is Covered By Equipment Breakdown Insurance? 

There are many types of equipment covered by equipment breakdown insurance. It protects them in the case of sudden, unexpected, or unavoidable breakdowns, such as electrical surge, mechanical failure, and other common types of incidents that can cause important pieces of equipment to suddenly lose function. One example of something covered by equipment breakdown coverage would be refrigeration equipment. If there is a power surge or a mechanical breakdown, a company's refrigeration units can stop working, leading to food spoilage if not handled quickly. In such a case, equipment breakdown insurance can cover the cost of repairing the damaged equipment before the loss of food due to spoilage. Some plans may also compensate the insured party for spoilage if perishable items go bad as a result of an insured peril.  

Other types of equipment covered include food processing equipment, communication systems, phone systems, and other electrical equipment. HVAC equipment, such as air conditioning systems and boiler machines, are also protected. If you want to know if your equipment can be covered by equipment breakdown insurance or to learn more about your potential coverage options, please speak with your Morison Insurance broker. 

What Is Not Covered By Equipment Breakdown Insurance? 

Although equipment breakdown insurance is very versatile and covers the costs of repairs and replacements for a wide variety of potential losses, it does not cover all incidents. It is designed to cover sudden losses where the insured had little time to prevent a loss. Equipment breakdown coverage will not cover any damage done intentionally by the user. It also does not cover instances where damage was the result of wear and tear or poor maintenance on the part of the user. 

If you have any questions about whether your equipment would be covered in the event of a potential incident, your Morison Insurance broker will be happy to answer them. 

How Much Does Equipment Breakdown Insurance Cost? 

There is no set cost for equipment breakdown insurance. Since no two businesses are the same, every company will have a different equipment breakdown insurance quote. Furthermore, each insurance company will consider different factors in their own unique ways, so there's no set formula that you can choose to determine your rate. 

However, some common factors could potentially impact your equipment breakdown insurance quote. These include, but are not limited to: 

  • The level of equipment breakdown coverage  
  • The claims history  
  • The range of equipment that falls under the insurance plan, as well as the quantity of each type of equipment 
  • Any risks associated with the business location 

Please note that this is not a complete list of things that could potentially impact your equipment breakdown insurance quote. If you would like to know other possible details that could increase or decrease your premium, your Morison Insurance Broker would be happy to let you know. 

What Are Some Ways To Lower The Cost Of Equipment Breakdown Insurance? 

Given the vast number of factors that could potentially impact your equipment breakdown insurance quote, you might begin to wonder if any of these factors are within your control. There are a few actions you can take to keep costs lower. They include: 

  • Increase your deductible 
  • Improve your workplace safety practices and other risk management to minimize the chances of a breakdown, fire or other accident 
  • Avoid making claims on smaller incidents to keep your claims record clean 

Where Can I Get An Equipment Breakdown Insurance Quote? 

You can receive your equipment breakdown insurance quote from Morison Insurance. Morison Insurance is a 5-star brokerage with over a century of history of helping our clients find the insurance package that's the best fit for them. We are a family-run business that treats every client we have like an extension of that family. You can receive a quote on your equipment breakdown insurance or any other insurance policy you may desire by calling us at 1-800-463-8074 or filling out the form below. You'll be glad you did. 


This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.

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