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Why Businesses Need Mechanical Breakdown Insurance

It’s a fact of life that things break down. (And they usually do at the worst possible time, but that’s another story.)

Many of us have at one time felt like everything in the house is malfunctioning. But what about when something in your business breaks down? Would you be able to keep your doors open and make payroll if a critical piece of equipment wasn’t working?

Unfortunately, these situations happen. And when they do, they can be devastating to a business.

Enter mechanical breakdown insurance

One of the most common ways in which businesses protect against this kind of loss is to purchase mechanical breakdown insurance. This coverage—which is sometimes called boiler and machinery insurance—covers your business if a piece of equipment breaks down. Coverage typically includes boilers, office equipment, heating and cooling systems, furnaces, cash registers, refrigeration, water heaters, elevators and more.

Mechanical breakdown insurance typically covers the cost to replace or repair the broken equipment. It also typically covers the cost to replace any spoiled products or materials resulting from a covered breakdown; to repair any damage the broken equipment caused; and any special services to speed up the restoration process or limit the loss.

Beyond these costs, an even bigger expense could be the costs you incur when your business can’t operate. That’s why you should look for mechanical breakdown insurance that includes business interruption insurance.

Business interruption insurance reimburses you for your lost income due to a total or partial interruption in business.  This includes the profits your business would have generated if it was operational.  This reimbursement could be used to pay the fixed costs your business continues to incur even while it’s shut down. An example of this could be rent or mortgage payments or real estate taxes.

Business interruption can also include extra expenses coverage. This coverage reimburses you if you incur extra expenses to get back in business faster or to keep your business operational while things are being restored. Two examples of extra expenses are renting a temporary location or leasing a piece of key equipment.

Mechanical breakdown coverage from ERIE

Erie Insurance offers businesses Mechanical and Electrical Breakdown coverage as an affordable coverage within its business package policies. This endorsement includes all the coverages described above—and it also includes inspections of boilers and pressure vessels when required by state requirements. ERIE can also help you improve equipment operations and maintenance programs to prevent losses.

Interested in Mechanical and Electrical Breakdown coverage? Then contact an Erie Insurance Agent in your community to learn more and get a free quote.

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of July 2022 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.