Equipment Breakdown Insurance Explained

Equipment Breakdown Insurance Explained

Also called boiler and machinery insurance, equipment breakdown insurance covers for numerous machinery or systems failures associated with your Alberta business.

Bow Valley Insurance of Calgary has over 36 years of experience as independent insurance brokers working to provide options to our businesses and residential clients throughout Alberta.

The History of Boiler and Machinery Insurance

Until relatively recently, delivering safe high pressure steam power and electricity was very risky before electronics and diagnostic equipment became more common. Boilers, and the machinery that ran off of the live steam they generated, were extremely hazardous when they were being manually operated. No matter the industrial concern, a boiler explosion was a catastrophic event, one that could occur with little or no warning, and would certainly cripple the business. 

The insurance industry began protecting against these unfortunate events, and boiler and machinery insurance was born. Over the ensuing decades it has evolved to cover numerous other types of mechanical failures and breakdown risks that hold the potential to bring business to a grinding halt. Today, equipment breakdown insurance covers all manner of specified failures, such as those of computer-controlled machinery, industrial robots, HVAC systems for businesses that need constant and consistent temperatures, and also against power surges.

For equipment breakdown insurance coverage to come into effect, the failure must be that of the equipment and not caused by an outside force or from neglect. Policies offered for equipment breakdown insurance typically exclude normal wear and tear, vibration damage, lack of lubrication, and other preventable and foreseeable causes of equipment failure.

If you own or lease an industrial site where catastrophic and spontaneous equipment failure, and the prolonged downtime associated with it, will irreparably harm your business, equipment breakdown insurance is a critical policy to hold. Depending upon the specific terms of your coverage you are covered for the interruption of your business, loss of income caused by the mechanical failure, extra expenses incurred to mitigate your losses or to keep your business running, hazardous material clean up and disposal, professional fees incurred for procuring an alternate site and other services rendered, et cetera.

Providing Equipment Breakdown and Commercial Insurance to Alberta Businesses 

Due to the specificity with which the covered equipment must be described, what perils are included or excluded, how the equipment breakdown insurance interoperates with your more general commercial coverage, and what kind, and to what extent, the damages to your business are covered, it is vital to have a guide for you real needs.

That is where the independence of the brokers at Bow Valley Insurance of Calgary comes in. We represent the commercial insurance products of as many as fifteen nationally recognised insurers. With this broad representation of potential policy issuers, we are best situated to finding one that is tailor-made for your business.  

If you need peace of mind against unexpected mechanical breakdowns stopping your business dead in its tracks, contact us for a free quote.