Machinery Breakdown Insurance

Machinery Breakdown Insurance

Think about the impact on your business if your equipment fails.

Immediately, your operations are interrupted. How will you deliver your orders? If you don’t have backup equipment, you may need to find alternate facilities or rent equipment, which will increase your costs. What if customers can’t wait? Orders may be cancelled, which means you will suffer loss of revenue, and possible damage to your reputation. Personal injury could also result.

A typical commercial property policy does not cover loss or damage caused by:

  • Electrical arcing
  • Mechanical breakdown, and
  • Explosion of boilers and pressure vessels

Machinery breakdown insurance covers the sudden and accidental, physical damage to equipment that requires its repair or replacement. It applies to equipment in the following categories:

  1. Electrical 
  2. Air Conditioning and Refrigeration
  3. Boiler and Pressure Vessel – 
  4. Computer and Communications
  5. Mechanical
  6. Renewable and Alternative Energy
  7. Production Systems

Machinery Breakdown Insurance Real Canadian Loss Examples

  • A power surge caused total telephone system failure for a real estate developer. Losses exceeded $39,000
  • A furniture maker’s automated saw broke down when microprocessors were damaged by a short circuit caused by movement of the saw. Losses, including business interruption expenses, exceeded $20,000.
  • A transformer on a revenue-generating solar power system was damaged by an electrical breakdown. Total losses, including business interruption, amounted to $140,000

To learn more about ALIGNED, our commitment to providing insurance expertise and the best insurance products or solutions, talk to one of our advocates today. We can help you secure the best products, services and solutions for your business.

ALIGNED Across Canada   100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.


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