Covering your equipment
The core components of equipment breakdown insurance
When your critical equipment stops working properly, it can result in serious financial losses that are not covered by standard property insurance. Whether your equipment breakdown leads to inventory spoilage, business interruptions or significant repair or replacement costs, you’ll want to ensure you’re protected. Equipment breakdown insurance is designed to back your business when your equipment fails. Especially vital for Canadian manufacturers, it provides a safeguard for accidental breakdowns of a wide range of equipment. It can help get your equipment back up and running while minimizing losses.
Repairs or replacement
If your equipment needs to be fixed or replaced, this can help you cover your costs and expedite expenses to complete work more quickly.
Business interruption losses
When your business experiences an equipment failure, this can help your business cover any lost profits and cover ongoing expenses to maintain operations.
Extra expenses
While your equipment is being repaired or replaced, this can help cover additional expenses such as equipment rental costs or temporary relocation.
Spoilage of inventory
This can help recover costs due to temperature changes as the result of a sudden and accidental breakdown of refrigeration or heating equipment, causing consequential spoilage to stock or inventory.
WHY CHOOSE NAVACORD
Our advantage for equipment breakdown coverage
Every moment of downtime can lead to lost revenue and damage customer relationships. That’s why manufacturers and other businesses look to Navacord for reliable equipment breakdown coverage.
Comprehensive protection
Our comprehensive approach to equipment breakdown coverage ensures your business is protected against a range of potential issues related to your equipment.
Tailored coverage
By working closely with our experienced advisors, you'll be assured you’re armed with a policy that is designed specifically for your business and equipment.
Industry expertise
We understand the unique needs of your industry and can help assess the risks to ensure your equipment is adequately covered.
Learn from our equipment breakdown insurance experts
“Equipment breakdowns are generally not covered by property insurance. Equipment breakdown insurance covers your property from electrical and mechanical breakdowns and can help protect essential equipment and downtime for your business.”
FAQs for equipment breakdown insurance
While commercial property insurance can cover your equipment in certain cases such as damage caused by a fire, it does not cover equipment that breaks down due to mechanical or electrical failure. Equipment breakdown insurance fills the gap, helping to cover repairs or replacement costs, and additional expenses.
Equipment breakdown insurance covers mechanical or electrical breakdowns which are not normally covered by commercial property insurance. It can reduce the costs of a sudden breakdown
Optional inspections by an insurance company can help identify potential issues before they lead to equipment breakdowns, and may also help meet provincial inspection requirements.
Many types of manufacturing or processing equipment, and heating or cooling equipment can be covered under equipment breakdown insurance. This includes:
- Air conditioning and refrigeration systems
- Boiler and pressure vessels
- Electrical systems, panels, cables and transformers
- Communication systems like computer systems, security systems, voice mail and phone systems, and fire alarm systems
- Hydraulic presses, extruders, lathes, mills
- Mechanical equipment including engines, motors, elevators, water pumps, generators, and other manufacturing or specialized production machinery, including Computer Numerically Controlled (CNC) equipment
- Renewable and alternative energy systems
Mechanical and electrical breakdowns that are covered under equipment breakdown insurance include: power surges, short circuits, operator errors, arcing, overheating or burnout, bursting, explosions, ruptures, and more.
Note: breakdowns that are caused by a lack of maintenance, wear and tear, material deterioration or corrosion, or operation of safety devices won’t be covered.
Even if your businesses isn’t a large manufacturer, or working with large-scale machinery, most businesses that own equipment have a need for equipment breakdown insurance. If you’re not sure if you need equipment breakdown insurance, consider if your business has any of the following:
- Heating or air conditioning in your building
- Computers and/or printers that are required to complete your operations
- A telephone system
- A refrigeration system
- A security system (alarms, cameras)
- Escalators or elevators
- Machinery to manufacture products (anything from ovens to 3D printers)
- Any type of equipment that requires electrical power
If your business has any of the above, you should consider adding equipment breakdown insurance to your policy.
