Comprehensive Insurance on Business Equipment: LMBF Equipment Breakdown Insurance

If your business owner’s policy contains property insurance, you may already be aware that while your coverage will protect your building and its contents, it generally excludes coverage for electrical, mechanical, or pressure breakdowns to your equipment. For this, you will need specialized insurance on your business equipment otherwise known as an equipment insurance policy. LMBF helps tailor equipment breakdown insurance for losses due to accidental or sudden breakdown of insured equipment that might not otherwise be covered by a standard commercial policy. Under an equipment insurance policy, you may insure anything that is mechanical, electronic, under pressure (such as boilers), or electrical.

What Equipment Breakdown Insurance Covers



Electrical and mechanical breakdowns can be catastrophic for businesses that depend on their equipment. If your insured equipment should suddenly breakdown or malfunction, your equipment insurance policy may contain coverage for the cost of repairs and restoration.

Temporary Replacement

Temporary Replacement

If an integral piece of machinery or equipment should unexpectedly breakdown or suddenly malfunction, your equipment insurance may include coverage for a temporary replacement so you can continue running your business while your existing piece is repaired.

Loss of Income

Loss of Income

During a period of lost income arising from unfulfilled orders and services or canceled reservations, your equipment insurance policy may include coverage for lost sales and revenues.

  What equipment breakdown insurance covers
  • Loss of income
  • Repair costs
  • Temporary replacement
  • Damage to other property
  • Sudden and accidental breakdown
  What equipment breakdown insurance excludes
  • Third-party liability
  • External sources causing loss
  • Intentional damages
  • Criminal activities
  • Sudden discharges of water

What is equipment breakdown insurance?

Equipment breakdown insurance is insurance on business equipment that is designed to reimburse you for any losses arising due the unexpected malfunction of your important machinery or equipment. Insurance companies will likely reject equipment breakdown claims without adequate insurance as a typical commercial property policy won’t include losses due to breakdown or sudden malfunction. For any business that depends on its equipment and machinery, this policy is crucial.

Equipment Insurance Policies for These Business Sectors:

Any business can have a piece, multiple pieces, or a full system or boiler of machinery that it relies upon for daily operations. That can be anything - from your drills and tools as a construction worker or your boiler and dishwasher as a restaurant owner. You might not think an electrical or mechanical breakdown would be such a huge deal, but for many industries, it can be catastrophic and put them at risk of severe financial losses while the breakdown is being dealt with and a temporary replacement is being found. Read on for some examples of the various businesses and business sectors that may benefit from an equipment insurance policy.
Financial Industry


  • Commercial banks
  • Insurance brokerages
  • Financial advisors
  • Accountants & bookkeepers
More info
Real Estate Industry

Real Estate

  • Estate agents
  • Real estate developers
  • Property management
More info
Construction Industry


  • HVAC construction
  • Commercial construction
  • Residential construction
  • Demolition
  • Electrical installers
  • Highway construction
More info
Maintenance Industry

Personal Services

  • Garage repair shops
  • Autobody stores
  • Auto servicing
More info
Education Industry


  • Online courses
  • Driving schools
  • Primary education
  • Universities
More info
Manufacturing Industry


  • Metal manufacturers
  • Autobody part manufacturers
  • Chemical manufacturers
  • Food manufacturers
More info
Transportation Industry


  • Airlines
  • Freight road transportation
  • Courier companies
  • Railways
  • Trucking companies
More info
Organizations Industry


  • Chairities
  • Organizations
  • Fundraisers
More info
Agriculture Industry


  • Hobby farms
  • Commercial farms
  • Beef farms
  • CBD plantations
More info
Entertainment Industry


  • Bowling alleys
  • Amusement parks
  • Theatres
  • Arcades
  • Minigolf
More info
Healthcare Industry


  • Occupational therapists
  • Counselors
  • Massage therapists
  • Dentists
More info
Retail Industry

Retail Industry

  • Liquor retail
  • Grocery retailing
  • Furniture retailing
  • Garden supplies retailing
  • Auto parts retailers
More info
Hospitality Industry


  • Hotels and motels
  • Travel agents
  • Lodging agencies
More info
Publishing Industry


  • Printers
  • Publishers
More info
Personal Care Industry

Personal Care

  • Hair salons
  • Weight loss services
  • Nail spas
  • Dry cleaners
More info
Wholesale Distribution Industry

Wholesale distribution

  • Agricultural machinery wholesale
  • Audio and video equipment retailers
  • Bakery product wholesale merchants
More info
Professional Services Industry

Professional Services Industry

More info

Our Equipment Breakdown Insurance partners

The cost of repairs or replacing damaged equipment can be colossal for some businesses, and it’s not something you’ll want to have to deal with on top of your existing business expenses and operations. LMBF has partnered with some of Canada’s top equipment breakdown insurance carriers to help ensure you get an equipment insurance policy that is uniquely tailored to your coverage needs. Start with a free quote to see how affordable great coverage can be.

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Want to Get Started on Your Equipment Insurance Policy? Start with an Equipment Breakdown Insurance Quote.

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Equipment Breakdown Insurance: Frequently Asked Questions

A: Different providers may allow coverage for different types of equipment and machinery, but you may expect the following to be insurable: televisions, refrigerators, furnaces, security systems, heating and air conditioning units, washers and dryers, computers, exercise equipment, stoves and ovens, gaming consoles, and more.

A: No, equipment breakdown insurance is an optional purchase. However, if you’re in business, you’re likely to want insurance for equipment that you use day-to-day in commercial, industrial, and even small office settings. You’d be surprised at how difficult it is to run a business without your machinery and equipment. If you’re renting your equipment, your lender may require you to carry an equipment insurance policy.

A: Depending on the cause of damage, your property insurance may not cover your business’ air conditioning and heating systems if the loss was due to sudden mechanical breakdown and not an external cause, such as a fire or falling object. For this, you would need an equipment insurance policy.

A: A claim you submit for loss of revenue and sales due to equipment breakdown may be covered by your equipment insurance policy. This could be due to unfulfilled orders and services that would otherwise have been possible were your equipment in working order, cancelled reservations, or missed deadlines.

A: An equipment insurance policy will cover machinery or equipment breakdown that is sudden or unexpected and not due to an external source, like a fire or extreme weather event. Losses that are covered include the breakdown of any items described in the policy.

A: Boiler and machinery insurance is another name for equipment breakdown insurance but not as commonly used. Boiler and machinery insurance insures your covered equipment for unexpected and accidental breakdowns and loss of income.