It’s a fact of life that things break down. (And they usually do at the worst possible time, but that’s another story.)

Many of us have at one time felt like everything in the house is malfunctioning. But what about when something in your business breaks down? Would you be able to keep your doors open and make payroll if a critical piece of equipment wasn’t working?

Unfortunately, these situations happen. And when they do, they can be devastating to a business.

Enter mechanical breakdown insurance

One of the most common ways in which businesses protect against this kind of loss is to purchase mechanical breakdown insurance. This coverage—which is sometimes called boiler and machinery insurance—covers your business if a piece of equipment breaks down. Coverage typically includes boilers, office equipment, heating and cooling systems, furnaces, cash registers, refrigeration, water heaters, elevators and more.

Mechanical breakdown insurance typically covers the cost to replace or repair the broken equipment. It also typically covers the cost to replace any spoiled products or materials resulting from a covered breakdown; to repair any damage the broken equipment caused; and any special services to speed up the restoration process or limit the loss.

Beyond these costs, an even bigger expense could be the costs you incur when your business can’t operate. That’s why you should look for mechanical breakdown insurance that includes business interruption insurance.

Business interruption insurance reimburses you for your lost income due to a total or partial interruption in business.  This includes the profits your business would have generated if it was operational.  This reimbursement could be used to pay the fixed costs your business continues to incur even while it’s shut down. An example of this could be rent or mortgage payments or real estate taxes.

Business interruption can also include extra expenses coverage. This coverage reimburses you if you incur extra expenses to get back in business faster or to keep your business operational while things are being restored. Two examples of extra expenses are renting a temporary location or leasing a piece of key equipment.

Mechanical breakdown coverage from ERIE

Erie Insurance offers businesses Mechanical and Electrical Breakdown coverage as an affordable coverage within its business package policies. This endorsement includes all the coverages described above—and it also includes inspections of boilers and pressure vessels when required by state requirements. ERIE can also help you improve equipment operations and maintenance programs to prevent losses.

Interested in Mechanical and Electrical Breakdown coverage? Then contact one of our agents at Bowers Insurance. 

By: Amanda Prischak