Arizona Equipment Breakdown Insurance

How to connect with a local adviser

Written by Candace Jenkins
Written by Candace Jenkins

Candace Jenkins is a licensed insurance advisor with over a decade of experience. She is also a writer and loves to write on all things insurance. Candace writes for on a continuous basis and is here with the facts about all your insurance inquiries.

Reviewer: Jeffrey Green Reviewed by Jeffrey Green
Reviewer: Jeffrey Green
Reviewed by Jeffrey Green

Jeff Green has held a variety of sales and management roles at life insurance companies, Wall street firms, and distribution organizations over his 40-year career.  He was previously Finra 7,24,66 registered and held life insurance licenses in multiple states. He is a graduate of Stony Brook University.

Arizona Equipment Breakdown Insurance

In 2020, Arizona had over 757,869,000 property insurance claims paid alone. You could save thousands of dollars and time by obtaining the right coverage on the front end. Business equipment breakdown insurance could help your operation stay active during a property loss. 

An independent insurance agent will show you the best coverage and premium options for your business. They have several carriers they can quote through so that you have choices. Connect with a local expert to get started.

What Is Equipment Breakdown Insurance?

Equipment breakdown insurance will cover a variety of losses. This policy is not your typical business property coverage. Both are necessary to have adequate protection.

  • Equipment breakdown coverage: this will pay for the repair or replacement cost of an electrical, mechanical, or pressure systems breakdown.

If a loss occurs, you will be financially responsible. This can cost time and money. Most small business owners cannot afford to lose either one. When you're accurately insured, you can rest easy.

What Does Equipment Breakdown Insurance Cover?

Your business insurance policies will vary depending on your industry. The majority of Arizona businesses will have some sort of property exposure. Usually, your assets will need both business property insurance and business equipment breakdown coverage. It will provide insurance for the following types of equipment and damage.

  1. Power surges
  2. Electrical shorts
  3. Mechanical breakdowns
  4. Motor burnout
  5. Operator error

Equipment can typically include the following items

    • Boilers
    • Air conditioners
    • Freezers
    • Refrigerators
    • Heavy machinery
    • Contractors equipment

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Equipment Breakdown Coverage under Home Insurance

Most home policies will carry some form of equipment breakdown coverage. The average homeowners premium in Arizona is $825 annually. Some carriers will include this coverage automatically, while others will not. 

A $10,000 limit is typical on a homeowners policy. You can increase accordingly as much as your policy form will allow. The amount of protection you'll want for equipment breakdown depends on the type of property and values of each you own.

Equipment Breakdown Coverage under Commercial Insurance

Arizona had $6,937,130,000 in commercial insurance claims paid in 2019 alone. A portion of those losses were equipment related. The value of each piece of equipment your business uses to function will help set the rate. 

Business equipment breakdown can be included on your business owners policy or package policies. Most of the time, it is adjusted to your specifications under a blanket amount. Equipment breakdown can help a business pay for the following.

    • The repair or replacement of damaged equipment
    • Lost income resulting from damaged equipment
    • Spoiled inventory like food or other products
    • Additional expenses accumulated as a result of damaged equipment

Does Business Property Insurance Cover Equipment Breakdown

Your Arizona business property insurance will cover numerous exposures. It will not insure the same risks as business equipment breakdown, which is why both are necessary. Business property insurance covers the following items.

  • Fire
  • Theft
  • Natural disasters

When you are obtaining quotes for your property, you should be aware of the exclusions. Business property insurance will not cover power surges, electrical shorts, mechanical breakdowns, motor burnout, and operator error. To avoid a coverage gap, review your policies with a licensed professional. 

How to Connect with an Arizona Independent Agent

In Arizona, your business insurance can be confusing if you're not a trained adviser. There are many coverages that your business property policy won't pick up. Equipment breakdown will work in conjunction with your other policies.  

An independent insurance agent can help quote your coverage for an affordable rate. They have access to several carriers so that you get the best deal in town. Connect with a local expert on in minutes.

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