Equipment Breakdown Insurance
Protect your essential equipment and systems.
Equipment breakdown insurance can safeguard your operations when an unexpected surge or system failure happens. Our team of experienced advisors will help you determine what your business needs to minimize losses and downtime.
Your guide to equipment breakdown insurance.
When your equipment fails, it can lead to financial losses like food spoilage, business interruptions, or significant repair or replacement costs. These costs can be expensive and are normally not covered by standard property coverage. Equipment breakdown insurance helps cover the costs associated with equipment failure for your business (and in certain cases, your home).
Equipment breakdown insurance can cover the following:
- Air conditioners
- Production systems
- Heating, refrigeration and ventilation systems
- Pressure equipment and boilers
- Alternative and/or renewable energy systems
- Electrical equipment
- Mechanical equipment
Supporting businesses across Canada.
Get your equipment breakdown insurance by phone or in person at your nearest branch.
Essentials for keeping your equipment covered.
With equipment breakdown insurance, business owners have coverage for:
Repairs or Replacement
This can help you cover costs to fix or replace your damaged equipment. It can also include expediting expenses, which are the additional costs to complete work immediately.
Business Interruption
This can help your business cover any lost profits that result from equipment failure, as well as cover ongoing expenses while your equipment is down.
Extra Expenses
This can help your business cover additional costs of operating while your equipment is being repaired or replaced such as equipment rental costs or temporary relocation.
Spoilage
If the loss of power, light, heat, steam or refrigeration – or a sudden spike in heat – damages your inventory, this can help you recover costs.
Why choose Acera Insurance for equipment breakdown coverage?
We’re independent
Without financial ties to any carriers, we provide impartial advice and work in the best interest of our clients.
We have specialized expertise
We pride ourselves on our depth of expertise in all sectors across Canada.
We’re Canadian owned
Our distinct Canadian perspective enables us to better understand our clients.
Helpful tips from our advisors.
Our dedicated advisors will gain an understanding of the equipment that’s most critical to running your business and provide advice on how best to protect it.
Answering your most common questions.
What’s the difference between equipment breakdown insurance and commercial property insurance?
Equipment breakdown covers the gap in risks covered under a commercial property policy. Property insurance does not offer protection for equipment damaged or destroyed by mechanical or electrical breakdown. If your equipment suffered such a breakdown, you’d need to cover repairs or replacement out of pocket unless you have equipment breakdown insurance.
For example, if there’s a fire that destroys your equipment, it would be replaced by your commercial property policy. This is because a fire falls under property coverage; however, if there is a power surge and it browns out your air conditioning unit, it would be repaired or replaced under the equipment breakdown policy. That’s because mechanical and electrical breakdowns are only covered by equipment breakdown coverage, not commercial property.
Why should I have equipment breakdown insurance?
Here are a few reasons to get equipment breakdown insurance:
- It covers a risk not normally covered by a commercial property policy – mechanical or electrical breakdowns.
- It helps reduce the costs of a sudden or accidental breakdown of your equipment.
- Inspections by insurance companies (that are not obligatory) may help reduce the likelihood of equipment breakdowns and may also meet provincial inspection requirements.
What type of equipment can be covered under equipment breakdown insurance?
Nearly any type of heating, cooling, manufacturing or processing equipment can be covered under equipment breakdown insurance, including:
- Air conditioning and refrigeration systems
- Boiler and pressure vessels
- Electrical systems including electrical panels, cables and transformers
- Communication systems including computer systems, security systems, voice mail and phone systems, and fire alarm systems
- Mechanical equipment including machinery like engines, motors, elevators, water pumps, generators and other manufacturing or specialized production equipment
- Production or manufacturing equipment
- Renewable and alternative energy systems
These categories can cover a wide range of equipment.
What causes of damage are covered under equipment breakdown insurance?
Mechanical and electrical breakdowns are covered under equipment breakdown insurance, including:
- Arcing
- Burnout
- Bursting
- Centrifugal force
- Electrical failure
- Explosion
- Mechanical breakdown
- Overheating (or burning) due to a lack of water
- Power surges
- Pressure buildup
- Rupture
- Short circuits
Breakdowns caused by a lack of maintenance, wear and tear, material deterioration or corrosion, or operation of safety devices won’t be covered.
What type of businesses need equipment breakdown insurance?
Most businesses have a need for equipment breakdown insurance, even if they are not mass-manufacturers, or working with large-scale machinery.
If you’re wondering whether you should have equipment breakdown insurance, consider whether any of the following apply to your business:
- There is heating or air conditioning in your building
- You rely on computers and/or printers to complete your operations
- You have a telephone system
- You have a refrigeration system
- You have a security system (alarms, cameras)
- You have escalators or elevators
- You use machinery to manufacture products (anything from ovens to 3D printers)
- You use any type of equipment that requires electrical power
If you answered yes to any of the above, you should consider adding equipment breakdown insurance to your policy.
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