For the commercial policyholder, mechanical breakdown insurance is an important and often vital coverage for its business. Companies are dependent on a variety of machines to manufacture, store, and sell products, as well as communicate with customers. This coverage is necessary for a number of different types of businesses, from wine cellers to large manufacturers.

Generally, mechanical breakdown insurance coverages five categories of equipment:

  1. Mechanical: production and manufacturing equipment, motors, engines, generators, elevators and water pumps.
  2. Electrical: transformers, electrical panels and cables.
  3. Computers and communications equipment: computers, phone systems, voice mail systems, and security and fire alarm systems.
  4. Air conditioning and refrigeration systems.
  5. Boilers and pressure equipment.

Mechanical breakdown insurance protects companies by providing coverage for repairs or replacement of equipment damaged from an insured accident. The coverage can also cover costs associated with the time and labor to repair or replace the equipment, and business income losses caused by breakdowns.

Commercial policyholders should be sure to discuss mechanical breakdown insurance with their insurance agent to insure they are covered in the event of a mechanical or equipment breakdown.