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Equipment Breakdown Coverage

There is no upside to equipment breakdowns.

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Spotlight on: Equipment Breakdown Coverage

Most businesses depend on specific tools or equipment to keep it running.  From computers at a marketing agency to the air compressors and saws a carpenter uses, almost every business has mission-critical equipment.

If you rely on tools, machinery or other equipment to power your business, you should consider equipment breakdown coverage. Equipment breakdown insurance helps keep your operation going, even if your equipment fails.

The Higginbotham Difference: Work with an insurance partner who listens.

Every industry is different. Every business has unique needs. There’s no one-size-fits-all approach. That’s why when you partner with Higginbotham, you’ll work with a seasoned insurance professional who takes the time to learn your risks, your exposures and opportunities.

At Higginbotham, we help you prevent and minimize loss—not just cover it. That’s why we deliver more than customized equipment breakdown coverage; we deliver year-round value with our Day Two Services® that support your risk management efforts.

By making policies personal, we help you accomplish more. Because while insurance is our something, our customers are our everything.

To learn more about how our values-based approach drives value for your business, click here.

Or visit our Insights page to learn about equipment breakdown coverage perils.

Our seasoned business insurance specialists design coverage around your unique needs.

You deserve an insurance partner that works as hard as you do.

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Alec Mullarkey and Taylor Porter have proven to be two of the best people I have ever had the pleasure of working with in my career. Their customer service is second to none, and their dedication in helping others expands well into their community and beyond.

Carrie B.
Program Manager, Engineering Industry

Boiler and Machinery Insurance Essentials

Also known as “boiler and machinery” (BM) insurance, equipment breakdown coverage can help pay to repair or replace damaged equipment for covered losses. 

Similar to commercial property insurance, this specialized coverage can help give you peace of mind.

Equipment breakdown insurance can help cover the cost of mechanical breakdown, power surges, overheating and other perils that can damage essential equipment. In some cases, equipment breakdown coverage can also reimburse you for lost revenue resulting from a covered breakdown.

We recommend talking to an insurance professional about designing your policy in this manner.

Examples of tools and equipment that qualify for this insurance coverage include:




Power Tools 

Furnaces and Boilers 

Refrigeration Units 

Cash Registers 

Air Conditioning and HVAC Units 


What does equipment breakdown insurance cover?

Equipment breakdown policies can help with the cost to repair equipment in the aftermath of a covered incident.


Examples of perils eligible for coverage include:

Damage from Improper Installation

Mechanical or Electrical Breakdown

Food Spoilage

Power Surges


While equipment breakdown coverage can cover a wide range of perils, there are some coverage exclusions, which include:

Breakdown Beyond Expected Service Life

Breakdown from Normal Wear and Tear

Breakdown from Improper Maintenance

Breakdown Resulting from a Flood or Fire

How much does equipment breakdown insurance cost?

The cost of equipment breakdown coverage depends on the equipment being insured and the scope of your business operation.

Our industry specialists take the time to learn about your unique needs to help ensure we deliver the best coverage at a price that makes sense for your budget.

If you’re interested in learning more about what boiler and machinery coverage from Higginbotham can do for you, give us a call today.


Risk Management Services

At Higginbotham, we take a consultative approach to customer service and risk management.

Whether you have a single policy, a commercial package or many insurance policies covering multiple locations and risks, we take the time to understand your unique needs so we deliver the best coverage at the best price available.

But we don’t stop there.

Our work continues 365 days a year. We have a Day Two Services® team that works in tandem with our risk management specialists to deliver year-round value.

From help with compliance to safety audits and claims advocacy, our Day Two Services® team helps you mitigate risks, avoid costly claims and better position your operations so you can focus on what matters most: growing your business.

Not sure where to start? Talk to someone who wants to listen.

A great plan starts with a conversation. Let’s talk about what you need.

Talk to an Equipment Breakdown Coverage Specialist
Request a Quote

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