The Western Reserve Group offers a comprehensive and competitively priced portfolio of personal, farm, and commercial insurance products. The products are backed by experienced employees dedicated to providing the best possible products and service to agents and policyholders.

Equipment Breakdown

Due to sophisticated and rapidly changing technology, virtually all of today's business equipment contains sensitive and fragile components that are very susceptible to damage.

The total cost of a breakdown - the equipment itself, consequential damage, business interruption, and resulting lost income - can be tremendous. It can amount to tens or even hundreds of thousands of dollars.

That's because one problem often causes a ripple effect. Two wires cross, a short circuit occurs, electricity shuts down, a whole building goes dead, and business income is lost.

Unfortunately, a standard property insurance policy typically excludes important coverage hazards unique to this equipment.

Add it all up and you begin to see why Equipment Breakdown coverage makes perfect sense.

Equipment Breakdown coverage pays for the loss that results when equipment is damaged by mechanical breakdown, power surges, electrical short circuits, overload, electrical arcing, motor burnout or centrifugal force - even if caused by operator error.

If your business has:

  • Air conditioning systems
  • Refrigeration systems
  • Heating systems
  • Boiler and pressure vessels
  • Electrical systems
  • Telephone and communication systems
  • Office and processing equipment, and/or
  • Production machinery

... your business needs Equipment Breakdown insurance.

Equipment Breakdown coverage protects not only the equipment, machinery, and systems that run your business - it goes further. Should a breakdown occur, you're covered against a wide range of financial losses caused by equipment breakdown including:

  • Physical damage - The cost to repair or replace damaged equipment.
  • Perishable goods - The cost to replace spoiled or contaminated goods and materials.
  • Business income - Expenses resulting from business interruption, such as lost income.
  • Other expenses - Costs associated with limiting the loss, such as equipment rental or steps taken to speed business restoration.

More than protection - combining resources with those of Hartford Steam Boiler - the nation's leading equipment breakdown insurer - we offer you technical expertise. By understanding the equipment you depend on - and what can go wrong with it - we can provide you with some of the broadest coverage available.

Is Equipment Breakdown coverage really worth it? If your budget won't easily accommodate a six-digit loss, the answer is a definite "yes."

The truth is in the numbers.

Factor in all the events that can cause a loss - a power surge, a blackout, a faulty connection, and human error. And then think about what's at risk and how the cost of an equipment breakdown can quickly escalate:

  • Modern electronic equipment is fragile and costly to replace.
  • Your business income increasingly depends on equipment.
  • You may need to pay higher fees for rush repair service, or you may need to rent emergency equipment.

You can easily see why the price tag to restore operations is often so high, only then do you realize how valuable Equipment Breakdown coverage is.

Be sure to ask for Equipment Breakdown coverage. So if the unforeseeable should happen, your "loss" will be a covered claim, and not a statistic.

A control on a refrigerator broke down, causing the temperature to fall into single digits. Drugs, normally stored between 34 to 43 degrees, had to be discarded.
Total Loss: $21, 953

A power surge damaged a service shop's electronics, including the computerized diagnostic system, telephone and security system.
Total Loss: $53,388

Electrical arcing severely damaged the interior of the main electrical panel, leaving the restaurant without power.
Total Loss: $85,417

Heavy accumulation of sediment caused overheating in a boiler.
Total Loss: $38,295

The air-conditioning motor shorted out. Equipment had to be rented to restore cooling during repairs.
Total Loss: $132,455

Voltage fluctuations from incoming electrical power supply caused two terminal boards in a telephone system to burn out.
Total Loss: $52,500

A meat freezer failed because of condensation dripping onto the relay. This caused a condenser fan to short out, resulting in the shutdown of an overheated compressor. Thousands of pounds of meat spoiled.
Total Loss: $34,529

80% of a mall lost power for five days when arcing at the incoming feeder damaged its electrical system, rendering cash registers, lighting, and security systems inoperable.
Total Loss: $234,366


This brochure is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the Equipment Breakdown coverage. Adapted with permission from The Hartford Steam Boiler Inspection and Insurance Company 1996-2006.