Equipment Breakdown Coverage Explained

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Boiler & Machinery is an antiquated term once used to describe a separate policy that offered coverage for causes of loss such as mechanical breakdown, electrical surges, explosion of steam boilers, steam pipes, etc. This separate policy was needed because these causes of loss are excluded from most commercial property policies.

Boiler & Machinery has evolved into Equipment Breakdown/Tech Advantage Coverage because of changing technology and construction. A simplified explanation of Equipment Breakdown/Tech Advantage is coverage for an accident or electronic circuitry impairment to covered equipment. Subject to the terms of the coverage form, covered Equipment includes the following:

  • Electrical Distributions Systems
  • Heating and Cooling Systems
  • Telephone Systems
  • Electronic Equipment
  • Refrigeration
  • Cloud Computing Services

Central provides the Equipment Breakdown/Tech Advantage coverage via an endorsement to our Package policies. State-mandated boiler inspections are also included as part of the coverage. While certain manufacturing operations are still more susceptible to equipment breakdown losses, almost all business operations have some exposure and can benefit from this coverage. Your independent insurance agent can help you evaluate the exposure and provide you with the peace of mind that comes from having Equipment Breakdown/Tech Advantage coverage.

The information above is of a general nature and your policy and coverages provided may differ from the examples provided. Please read your policy in its entirety to determine your actual coverage available.

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