What is Equipment Breakdown Insurance for Manufacturers?

Equipment Breakdown Insurance (formerly called Boiler and Machinery Insurance) covers the cost to repair or replace equipment that fails due to mechanical breakdown, electrical failure, motor burnout, or similar sudden internal failures. 

This includes production machinery, HVAC systems, computer systems, and electrical equipment.

Why it Matters for Manufacturers

Standard property insurance typically excludes mechanical and electrical breakdown—yet these failures are among the most common causes of production downtime for manufacturers. 

When a critical machine fails, you face both repair costs and lost production income. Equipment Breakdown Insurance covers the repair or replacement cost, expediting expenses to speed up repairs, and often includes business income coverage for production losses during downtime. 

For manufacturers dependent on expensive, specialized machinery, this coverage is essential for maintaining operational continuity and financial stability.