Equipment breakdown coverage for when machinery fails from the inside
Property insurance excludes internal mechanical and electrical breakdown with no external cause. Equipment breakdown (boiler and machinery) coverage fills that gap for production equipment, refrigeration, pressure systems and switchgear, with spoilage and business income included.
Typically 10–20% of property premium · Coordinated with your property policy
When equipment fails, property insurance doesn't pay
Three illustrative examples of internal equipment failures that property policies deny, and the coverage that closes the gap. For technical background, see the National Board of Boiler and Pressure Vessel Inspectors and ASME.
A compressor seizes and ruins the vintage
During harvest, an internal bearing in a winery's main refrigeration compressor seized and destroyed the motor. Without temperature control, 18,000 gallons of fermenting wine were ruined within 72 hours. The property claim was denied because the breakdown had no external cause.
- Emergency compressor replacement$185,000
- Spoiled inventory at wholesale$840,000
- Lost production$395,000
Illustrative example. Real outcomes depend on the facts and your policy terms.
Build the right coverage for your equipment
Tell us what your operation depends on and we'll show the breakdown coverages and extensions that typically apply. Every policy starts with a mechanical and electrical breakdown core. No contact details needed.
Your operation
Select everything that applies.
Coverage that typically applies
8 coverages — a starting point for a conversation, not a quote.
- Mechanical BreakdownInternal failure of motors, pumps and machinery.
- Electrical FailureArcing, short circuits and insulation breakdown.
- Refrigeration & HVACCompressor, chiller and climate-control failure.
- Spoilage CoverageTemperature-sensitive inventory losses.
- Production EquipmentCNC, lines and processing machinery.
- Business IncomeLost revenue during a breakdown.
- Expediting ExpensesRush shipping, overtime and temporary equipment.
- Newly Acquired EquipmentAutomatic coverage for new purchases.
From equipment schedule to certificate
Identify critical equipment
We review your equipment schedule and values, single points of failure, the revenue impact of downtime, and spoilage and temperature-trigger needs, so coverage matches actual exposure.
Coordinate with your property policy
We map where property insurance stops and breakdown begins, so the two fit together without gaps or overlaps and at the right total cost of risk.
Build the coverage
Mechanical and electrical breakdown at the core, with refrigeration and spoilage, business income and expediting, computer, production, utility interruption and hazmat cleanup added as needed.
Claims and recovery
Expedited claims handling when a failure threatens operations, careful cause-of-loss determination, and advocacy on coverage disputes for repair, spoilage and income recovery.
Every coverage a breakdown program may include
Filter by type or search to see the equipment breakdown coverages and extensions we place.
Mechanical Breakdown
Internal failure of production equipment, compressors, pumps, motors and machinery from wear, fatigue, metal stress and component deterioration that property insurance excludes.
Electrical Failure
Arcing, insulation breakdown, short circuits and power-surge damage to motors, switchgear, transformers, control panels and electronics.
Pressure System Failures
Boiler explosions, pressure-vessel failures and steam-system breakdowns, the original boiler and machinery exposures.
Refrigeration & HVAC
Compressor failures, refrigerant leaks, chiller breakdowns and climate-control failures for food service, cold storage, data centers and manufacturing.
Spoilage Coverage
Food, beverages, pharmaceuticals and perishables damaged when refrigeration or climate control fails.
Business Income Protection
Lost revenue and continuing expenses during a breakdown, from production shutdown to service interruption.
Expediting Expenses
Overtime labor, rush shipping, temporary equipment rental and express delivery of parts to shorten downtime.
Utility Interruption
Losses when off-premises utility equipment, such as a power-company transformer or municipal water pump, fails and disrupts your operations.
Computer Equipment
Servers, network infrastructure, data storage and specialized computer equipment, beyond standard technology coverage.
Production Equipment
CNC machines, manufacturing lines, processing equipment, conveyors and specialized production machinery.
Hazardous Substance Cleanup
Extraction and disposal of refrigerants, ammonia and other hazardous materials released in an equipment failure.
Newly Acquired Equipment
Automatic coverage for equipment bought during the policy term, so protection keeps pace with capital investment.
The machinery your business depends on
Refrigeration and chillers
Walk-in coolers, industrial refrigeration and chiller plants.
Boilers and pressure vessels
Steam boilers, hot-water systems and vessels subject to jurisdictional inspection.
HVAC systems
Rooftop units, air handlers and climate-control systems.
Electrical switchgear
Main switchgear, panels and distribution equipment.
Generators and UPS
Standby generators, transfer switches and uninterruptible power supplies.
Transformers
Step-down and distribution transformers critical to facility power.
Production machinery
Manufacturing lines, processing equipment and specialized machinery.
CNC and machining centers
CNC machines, lathes and precision machining centers.
Compressors and pumps
Air compressors, process pumps and fluid-handling equipment.
Conveyor systems
Belt, roller and automated material-handling systems.
Computer and server systems
Servers, network gear and data-center infrastructure.
Commercial kitchen equipment
Ovens, walk-ins, dishwashers and food-service equipment.
Brokers who understand equipment risk
Equipment experience
We've insured Pacific Northwest businesses since 1992. We understand manufacturing processes and refrigeration needs and look at single points of failure to set limits around real exposure.
Spoilage and income
Experience with temperature-sensitive inventory for wineries, breweries, food processors, restaurants, cold storage and pharmaceutical operations: spoilage limits, trigger temperatures and business-income limits that reflect real revenue.
Coordination and claims
We coordinate breakdown coverage with property, business income and utility exposures, and when equipment fails we help with cause-of-loss questions and coverage disputes.
Protect your critical equipment
Request an equipment breakdown review that identifies uninsured exposures and the right coverage for the machinery you rely on. No obligation. You can also email info@firstunderwriters.com.
Coverage descriptions are general summaries for education. They are not legal, tax or coverage advice, a statement of coverage, an offer or a binder; the coverage builder is a starting point for discussion, not a quote. Scenarios and dollar figures are illustrative examples, not representations about any business. Coverage, limits and eligibility are governed by the terms, conditions and exclusions of the policies issued and are subject to underwriting.