When equipment fails, productivity is affected. That’s why equipment breakdown coverage is so important. Breakdowns come in many forms, including:
  • A computer network damaged by a power surge
  • Problems with the electrical system
  • Mechanical issues with your production equipment
Equipment breakdown is more than annoying. It hurts the bottom line. That’s why we offer equipment breakdown insurance to help keep your business running.

What does equipment breakdown insurance cover?

Also known as "boiler and machinery" coverage, equipment insurance protects you in the event of breakdowns caused by power surges, motor burnout, boiler malfunction and operator error. Equipment breakdown insurance covers all sorts of equipment – mechanical and electrical equipment, computers and communication equipment, air conditioning and refrigeration systems, boilers and pressure equipment. It also includes coverage for new technology.

Equipment breakdown insurance covers the following and more


Power surges
Mechanical malfunction
Operator error


Mechanical & electrical
Computers & networks
Heating & cooling


Equipment repair
Business income losses
Lost or damaged inventory & materials

Ask yourself

And then talk to an agent about the following:

Should I get equipment breakdown insurance if I don’t own the equipment?

Yes. Business equipment insurance may not be your responsibility. But if the equipment breaks down, you could lose productivity, customers & income. Maybe you use leased equipment. Or one of your vendors, like an internet service provider, experiences a service outage. Equipment breakdown insurance covers business income losses in these situations.

Does property insurance cover equipment breakdown?

No. Most standard property insurance policies don’t cover your business equipment. And warranties can be limited – typically only covering new equipment for a short period of time. And they definitely don’t cover lost business income. Talk to your agent about adding an endorsement for equipment breakdown coverage.

How much equipment breakdown insurance should I buy?

To ensure you’re covered thoroughly, consider all of the scenarios that could occur.
  • Damage to your equipment
  • Damage caused to others’ property
  • Unavailable replacement parts
  • Being closed for an extended time

An honest look at how things can add up gives you a better idea about the amount of coverage you could need and what your equipment insurance quote will look like.

Find an agent

Product, coverage, discounts, insurance terms, definitions, and other descriptions are intended for informational purposes only and do not in any way replace or modify the definitions and information contained in your individual insurance contracts, policies, and/or declaration pages from Nationwide-affiliated underwriting companies, which are controlling. Such products, coverages, terms, and discounts may vary by state and exclusions may apply.