In the world of insurance, many different policies are available to protect yourself, your belongings, and your business. Many of these policies cater to your most prized possessions. A typical business or home policy will cover you if items are damaged in the event of fire or theft. However, what happens if there is a mechanical breakdown? This is where Equipment Breakdown Insurance comes into play! Whether it is in your home or a key component of your business, many types of machinery are crucial to keep the wheels moving in your day-to-day life. So, what happens if these pieces cease to work as intended? If you aren’t familiar, don’t fret! Let’s look at EB Insurance and why you might need it.

What exactly is this type of coverage?

Equipment Breakdown Insurance, formerly known as Boiler and Machinery (B&M) insurance, is a type of insurance policy that protects different pieces of machinery in your possession. Generally, Equipment Breakdown Insurance is used as an add-on to your business insurance policy where machinery is generally used. An example is if you are a restaurant owner and your oven or refrigerator stops working. From mechanical malfunctions and electrical shorts to burnout in a device’s motor, this will help you move forward with your business when things go south.

This insurance can also be part of your homeowner’s policy. Similar to business use, it will protect various appliances throughout your home, such as your furnace or water heater. It will also protect household appliances and entertainment systems. A standard homeowners’ insurance policy will protect your appliances if a fire or bad storm leaves them unusable. However, Equipment Breakdown Insurance will protect these items if a mechanical or electrical failure occurs.

What does Equipment Breakdown Insurance cover?

Equipment Breakdown Insurance will cover various items used in business and home settings. Some examples of what it will cover include:

  • Machinery catered towards a business (Ex. An electric saw)
  • Refrigeration equipment
  • Kitchen equipment
  • Computer equipment (Note: Equipment Breakdown Insurance does not cover software)
  • HVAC systems
  • Communication equipment
  • Boilers and pressure equipment
  • Furnaces and air conditioning units
  • Home gym equipment
  • Water heaters
  • Home entertainment systems

What doesn’t Equipment Breakdown Insurance cover?

It is important to note that there are a handful of exceptions to what Equipment Breakdown Insurance will cover. As mentioned above, when it comes to theft or damage due to a fire or flood, you’ll be looking towards your classic home insurance policy. With this in mind, there are a few more instances where Equipment Breakdown Insurance won’t be able to cover you. Here are some examples:

  • Normal wear and tear
  • Damage caused by defects
  • Mold damage
  • Damage due to pests
  • Damage from failing to take care of your machine

When should I invest in EB Insurance?

Not everyone is aware, but there are several instances where this insurance can be helpful. This is especially the case when it comes to owning a business. For example, if you are a seamstress and your sewing machine breaks, you won’t be able to continue providing your services to clients. Another example is if you are a restaurant owner with a broken stove or oven. This will result in you being unable to process orders or prepare and cook food for your patrons. This point is similar for home refrigerators, as well. If you suffer a mechanical breakdown, your insurance will reimburse you after your deductible is paid. On top of this, you may be reimbursed for any food spoilage that resulted from the breakdown.

How much does Equipment Breakdown insurance cost?

It can be difficult to pinpoint exactly how much Equipment Breakdown Insurance will cost. This is because many different factors can impact the price of your premium. Generally, common EB insurance will cost between $25-$50 per year, although this doesn’t include all policies. In most cases, Equipment Breakdown Insurance will be a touch pricier for your business in comparison to your home.


Whether you are a business owner or a homeowner, EB Insurance is an excellent way to give yourself some peace of mind. Sometimes, the inevitable happens, and we run into hiccups with our machinery and electronics. When this happens, you can rest assured you won’t have to pay out of pocket. If you have any questions or would like to request a home insurance quote, contact isure today!

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