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Equipment Breakdown Coverage in Texas

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What is equipment breakdown coverage? 

Many businesses are dependent upon crucial equipment, with operations coming to a complete halt if the equipment breaks down unexpectedly. Such downtime is costly, and emergency repairs can be expensive. To potentially help Texas businesses with costs such as these, there’s equipment breakdown coverage.

Equipment breakdown coverage is a unique form of commercial property insurance. It unique safeguards against covered malfunctions of equipment that’s necessary for operations.

What types of equipment can equipment breakdown insurance protect?

Equipment breakdown policies are available for a wide array of equipment. It’s generally purchased for expensive, essential and often specialized equipment. A knowledgeable insurance agent can check whether coverage is available for a particular piece of equipment.

Equipment Breakdown Coverage Texas

Which Texas businesses can benefit from equipment breakdown insurance? 

Any Texas business that heavily relies on specific equipment might want equipment breakdown insurance. It can be especially helpful when crucial and highly specialized equipment malfunctions.

Many businesses have essential equipment and therefore, may benefit from the coverage. For example, the following businesses would likely find coverage useful:

Possible Coverages Available

  • A residential complex might require coverage in case essential appliances such as furnaces, air conditioners, and water heaters necessitate immediate repair.
  • A manufacturing business might require coverage in case production machinery fails, which could cause a complete halt to the assembly lines.
  • A warehouse might require coverage in case inventory control equipment malfunctions, which could make product tracking impossible.
  • A retailer might require coverage in case their point of sale (POS) system fails, preventing transactions from being processed.
  • A craft brewery might require coverage in case essential equipment breaks down, leading to a potential loss of fermenting beer tanks if not promptly fixed.
  • A furniture maker might require coverage in case their CNC or other major tools break down, causing delays in project timelines.
  • A restaurant might require coverage in case their stove or oven breaks down, potentially leading to loss of ingredients and service interruptions.
Residential Complex
Manufacturing Business
Craft Brewery
Furniture Maker

In these sorts of situations, coverage may help mitigate repair costs, inventory loss, and/or missed sales opportunities.

For help deciding whether your business should carry this coverage, talk with an insurance agent who specializes in equipment breakdown policies. A specialized agent can give situations where the coverage would likely apply for your business.

Equipment Breakdown Coverage Texas

What are the types of malfunctions that equipment breakdown insurance covers? 

Allowing for variance among specific policies’ terms, policies might cover malfunctions resulting from:

  • Operational errors
  • Mechanical faults
  • Electrical discharges
  • Power fluctuations
  • Explosions 
  • Other causes of breakdown

What expenses do equipment breakdown policies cover?

Again, exact coverages are dependent upon a policy’s terms. A policy’s terms might provide coverage for expenses such as:

  • Standard repair charges billed by professional repair services
  • Emergency charges for after-hours or weekend repair services
  • Employee wages for in-house repairs
  • Inventory and/or supply losses owing to operational downtime
  • Revenue losses owing to downtime

Is boiler and machinery insurance the same as equipment breakdown insurance? 

Boiler and machinery insurance is a historical insurance, traditionally providing protection against malfunctioning boilers and industrial machinery. While some insurance companies may still offer it for HVAC equipment or assembly line equipment, this is becoming a less common coverage.

Instead, equipment breakdown is replacing boiler and machinery insurance in many situations. The change reflects that today businesses used much more than just HVAC or manufacturing equipment. Equipment breakdown better reflects the protections that might be available for a diverse array of equipment.

Where can Texas businesses in get equipment breakdown coverage?

For help making sure your business’s essential equipment is insured, reach out to the independent insurance agents at McKnight Insurance. Our Texas agents have in-depth knowledge about equipment breakdown coverage, and we’ll help you get the most essential equipment well protected.

McKnight Insurance Services Independent Agency in Mansfield Texas

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