Equipment Breakdown Insurance

Equipment Breakdown Insurance for California Businesses That Can’t Afford Downtime

Your HVAC system, electrical panel, boiler, or even your walk-in fridge keeps your business running. If any of that fails suddenly, the cost of repairs—or worse, the cost of being shut down—can hit hard. That’s where equipment breakdown insurance comes in.



Sometimes called boiler & machinery insurance, this coverage helps businesses across California stay protected from mechanical or electrical failure. At Derian Insurance, we help clients in Los Angeles and beyond fill this overlooked gap in their commercial coverage—before an outage turns into a financial hit.

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What Equipment Breakdown Insurance Covers

Most commercial property policies only respond to damage caused by outside forces—like fire, theft, or storms. But when equipment fails from inside (say, a short circuit or broken pressure valve), property insurance usually doesn’t apply.


Equipment Breakdown policies are designed to cover:

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HVAC and boiler failures (critical for hotels, offices, warehouses)

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Electrical panel or transformer surges

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Mechanical breakdown of production or manufacturing equipment

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Food spoilage from refrigeration system failure

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Diagnostic and repair costs for covered systems

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Business interruption loss caused by the equipment failure

Even something as simple as a blown circuit board or failed motor can halt operations—equipment breakdown insurance helps you recover faster and avoid costly out-of-pocket repairs.

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Businesses That Should Consider Boiler & Machinery Coverage

Any business that relies on powered systems, machinery, or climate control should seriously consider this coverage. That includes:


  • Restaurants and foodservice businesses (refrigerators, ovens, freezers)
  • Hotels and hospitality (boilers, HVAC, laundry systems)
  • Office buildings & medical clinics (A/C systems, elevators, tech infrastructure)
  • Manufacturers or industrial operations (machinery, compressors, assembly line systems)
  • Retailers with refrigeration or point-of-sale systems

If your building is in Downtown LA, a historic district like Highland Park, or a hotter inland neighborhood like Glendale—equipment strain and power surges are real risks. We help you plan ahead.

Why Work with Derian Insurance?

We’ve worked with California businesses for over 55 years, and we know how easily an internal failure can cause external fallout. From helping a family-run diner get back to service after a refrigeration failure, to reviewing building systems for multi-tenant properties—we understand how breakdown risks vary by industry, size, and location.

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We evaluate your risk and make sure your coverage lines up with how your systems actually operate

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We combine policies smartly, so your property, equipment, and liability coverage work together

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We offer claims guidance when outages strike, so you’re not left sorting it out alone

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We explain often-missed extras like spoilage coverage or business income extensions

Our goal is to make sure a blown fuse doesn’t blow your budget—or your operations.

FAQs About Equipment Breakdown Insurance

  • Isn’t my equipment covered by property insurance?

    Not usually. Property insurance covers external causes—like fire or vandalism. Equipment breakdown covers internal failures like electrical shorts or mechanical breakdowns.

  • What types of equipment are typically covered?

    Heating and cooling systems, electrical panels, refrigeration systems, boilers, production machines, computers tied to machinery—basically anything mechanical or electrical your business depends on.

  • Does this coverage include repair costs?

    Yes. It can cover both repair or replacement of the failed equipment, and in many cases, loss of income due to the outage.

  • How much does equipment breakdown insurance cost?

    It’s usually affordable—especially compared to the cost of major equipment failure. Pricing depends on your business size, industry, and the value of your equipment.

  • Can this be added to my existing policy?

    Often yes—it can be added as an endorsement to your commercial property policy or purchased as a stand-alone. We’ll walk you through the best setup.

Get a Quote for Equipment Breakdown Coverage in California

If your business relies on powered systems or machinery, make sure you’re not left exposed. Let’s review your current policies and see where breakdown coverage fits.