Maryland Equipment Breakdown Insurance

Many businesses in Maryland rely on equipment and machinery to operate. This can range from machinery used by manufacturing plants to equipment used in office settings. If this essential machinery fails, it can cause big financial losses for companies that are not covered by equipment breakdown insurance.

If you are looking for a reliable equipment breakdown insurance policy for your Maryland business, a local independent agent can help. Find an insurance agent near you to get more information about this important coverage and to start comparing a selection of customized quotes.

What Is Equipment Breakdown Insurance?

Equipment breakdown insurance, which is a more comprehensive form of boiler & machinery insurance, is one of the many coverage options offered by business insurance providers.

This insurance is designed to cover the cost to repair or replace well-maintained business equipment if it breaks down suddenly or accidentally due to a covered event like a power surge, motor burnout, or short circuit.

Equipment Breakdown Insurance Claims Examples

The following are examples of times that Maryland businesses may be glad they have equipment breakdown insurance.

• A compressor used at a manufacturing plant experiences a motor burnout and stops working. This halts assembly line production, and operations must shut down until the unit is repaired.
• A hurricane causes a long-term power outage. When the owner of a seafood restaurant is finally able to get to her establishment, she discovers that the food in her freezers has thawed and her refrigerated items are no longer safe for human consumption.
• Despite being relatively new and well-maintained, the furnace used by a movie theater fails in the dead of winter. The theater is too cold to welcome customers and must remain closed until the furnace can be repaired and the theater is suitably heated.

Without a solid equipment breakdown insurance policy in place, each of these incidents could lead to large financial losses for the affected companies.

How Much Does Equipment Breakdown Insurance Cost in Maryland?

The cost of equipment breakdown insurance can vary from one company to the next. This is because rates are calculated according to factors such as the following.

• The type(s) of equipment you are insuring
• The value of the equipment you are insuring
• How much coverage you want to purchase
• Whether spoilage coverage is needed
• Your company’s claims history
• The size of your deductible

Overall, equipment breakdown insurance is rather affordable. On average, businesses in Maryland spend about $100 a year for every $100,000 worth of coverage being purchased.

The easiest way to find out how much a policy will cost for your business is by consulting a local independent insurance agent. Your agent can then request customized quotes from a few competing insurance providers on your behalf.

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What Does Maryland Equipment Breakdown Insurance Cover?

Equipment breakdown insurance is designed to cover the equipment your business needs for its regular day-to-day operations. It can cover expensive property such as the following.

• Boilers, machinery, and mechanical equipment
• Refrigeration and freezer units
• Air conditioning and heating units (HVAC)
• Computers, servers, and networking equipment
• Phone systems and other telecommunications equipment
• Sump pumps
• Security systems
• Electrical power panels

If your equipment breaks down suddenly due to a power surge, power outage, short circuit, motor burnout, centrifugal forces, or other covered events, this insurance can cover the following.

• Repair or replacement costs: If your essential equipment malfunctions, your insurance can cover the cost to repair it or to replace it if it cannot be fixed.
• Expedited repair services: If your equipment is necessary for your normal business operations, having it repaired or replaced quickly is vital to keep your business losses at a minimum.
• Compensation for losses due to spoilage: If your refrigeration or freezer units fail and it leads to the spoilage of perishable items like food or medications, your equipment breakdown insurance may cover the cost to replace it. In some cases, spoilage insurance must be purchased as an additional coverage option.
• Lost income reimbursement: If your business loses significant income due to a prolonged shutdown caused by equipment failure, this insurance can help by reimbursing you for your documented losses.
• Property damage liability costs: If the equipment breakdown at your place of business results in the loss or damage to a third party’s property, your policy may cover the cost to compensate the owner of the damaged property.
• Mandatory inspections: Because equipment must be well-maintained and in good working order in order to be covered, most insurance companies require that you allow regular inspections of any equipment you are insuring. These inspections should be conducted at no additional cost to your business.

Some insurance companies may not provide all the coverage listed above, while others may offer even more coverage. That is why is pays to compare just not prices but also coverage offering before you select a policy.

What Does Maryland Equipment Breakdown Insurance Not Cover?

As with any type of insurance policy, equipment breakdown insurance has limitations.

Naturally, your policy will not cover costs that exceed its coverage limits. But you should also be aware that in most cases it will also not cover costs related to breakdowns that are caused by these conditions.

• Failure to properly maintain machinery
• Normal wear-and-tear
• Rust or corrosion
• Pest infestation damage
• Structural damage to the foundation, cabinet, compartment, or other structure that supported the equipment

Talk to an independent insurance agent in Maryland to learn more about the limitations of equipment breakdown insurance.

How to Find the Best Equipment Breakdown Insurance in Maryland

If you are looking for any type of insurance for your Maryland business, you can benefit from working with a local independent agent. These experienced insurance professionals can help you assess your company’s coverage needs and can find you the best and most affordable policies to meet them.

There are more than 200 independent agents with offices in Maryland so it should be easy to find an insurance agent near you.