Equipment Breakdown Insurance can help cover the following:

• Spoiled inventory
• Repair or replacement costs for damaged equipment, including labor
• Necessary expenses incurred during the restoration period
• Lost income

• Electrical: Includes electrical panels, transformers, and cables
• Computers and Communications: Covers phones, voicemail, security, and fire alarm systems
• Mechanical: Encompasses motors, engines, generators, elevators, water pumps, and specialized manufacturing equipment
• Air Conditioners and Refrigeration Systems
• Boilers and Pressure Equipment

Even if you do not own your building, it is wise to have equipment breakdown insurance, mainly if your business depends on the proper functioning of equipment managed by a critical provider, like a local power company.

For instance, a power surge could disrupt your operations if your pizza shop in Illinois relies on walk-in customers and online orders. Your business will suffer if a power outage prevents you from processing online orders, maintaining proper temperatures, preparing, cooking, serving, and selling food. Additionally, a prolonged power outage could lead to food spoilage.

In this scenario, equipment breakdown insurance can help cover the following:

• Labor and material costs to repair and replace damaged equipment
• Replacement costs for spoiled food
• Repair costs for a walk-in refrigerator and replacement of a computer damaged by a power surge
• Lost business income during the power outage

If equipment breakdowns could impact your business in Illinois, this optional coverage might be a valuable addition. The team at Hecht-Stout Insurance Agency can help you understand your policy's coverage and determine if your business would benefit from additional protections, such as equipment breakdown insurance.