Equipment breakdown (formerly 'boiler and machinery') insurance bridges a significant gap in commercial policies, which generally exclude damage caused by explosion of steam boilers and pressure vessels, mechanical breakdown and electrical arcing. (The Church Insurance Company automatically includes this protection within its Pinnacle Policy, an all-risk product.)
An invaluable component of property protection, equipment breakdown insurance covers:
- sudden and accidental explosion
- mechanical breakdown
- electrical injury to heating, ventilation, electrical and electronic objects—from steam boilers to telecommunications equipment
For example, if a rooftop air conditioning compressor stops working because of a sudden failure within the motor, the policy will cover the cost of repairs and ensuing loss (including limited additional expenses to continue in operation pending repairs), subject to the policy deductible.