Equipment Breakdown Insurance: Too Important to Ignore!



Limits of Insurance

The base limit, as has been mentioned, is $500,000, which can and should be increased considering that in the worse case scenario of an explosion with a building or structure, that amount will not go very far. If any persons were to sustain injuries and surrounding property of others is damaged or destroyed, coverage would apply under the named insured’s commercial general liability and umbrella liability policies.

Unless a higher limit or “INCLUDED” is shown in the declarations, the most the insurer will pay for direct damage as a result of a breakdown to covered equipment is $25,000 for each of the following:


The base deductible is $500 and applies to any one breakdown. Furthermore, the deductible applies separately to each applicable coverage, except if:

The deductibles that can potentially apply are dollar deductibles, time deductibles, a multiple of a daily value deductible, or percentage of loss deductible.