Type of Coverage:

Equipment Breakdown Coverage from GMG Insurance Laguna

Many customers rely on electronic equipment for production and services, inventory management, customer data, and product information. This equipment is exposed to power surges, short circuits, and to general electrical disruption that can cause extensive losses, including, most importantly, lost business income.

Equipment breakdown insurance from GMG Insurance Laguna can help protect your company from the costs of repair and replacement and provide cash flow if you have to shut down due to a covered loss.

Coverage Benefits

A typical business insurance policy will cover damage to equipment caused by major named perils, but it usually doesn’t insure your business for losses due to mechanical breakdown. An equipment breakdown policy can cover losses caused by mechanical problems, electrical surges, motor burnout, the collapse of pressurized tanks or containers, and boiler malfunction.

It often covers lost business income due to a covered loss, spoilage of inventory due to the breakdown, the cost of temporary replacement equipment, repair or replacement costs, and business recovery expenses. Many insurers also provide maintenance service coverage and certification and inspections required by regulators.

Kinds of Equipment Covered

Equipment breakdown insurance covers large machinery as well as appliances and small, specialty equipment. It all depends on what sector your company is in. Refrigerators, ovens, computers, robotics, diagnostic equipment, telecommunications, and manufacturing and production lines are just a few of the long list of machinery and equipment you can insure.

Massive air moving systems and area source boilers, no matter their age, can be covered under an equipment breakdown, or boiler and machinery insurance, policy. If you have such a system, GMG Insurance will also help you find an insurer that can meet new federal requirements on emissions and inspections.

The coverage can be included in a business owners policy or purchased as a stand-alone contract.

Don’t let equipment failure cause your business to shut down.

Turn to GMG Insurance Laguna for knowledge, attention and reliability regarding your business insurance needs. Contact us (949) 715-7981 or email at