Ask whether a separate equipment-breakdown form applies to the named machine and failure cause, and whether it addresses resulting income loss or extra expense. Do not infer those terms from the property limit.[1]
If the outage is caused by a supplier or other dependent business, ask separately about contingent business interruption and its trigger. NAIC notes that contingent coverage may also require physical damage at the dependent location.[5]
Read the Operations Insurance Buying Guide
Sources and Further Reading
- Commercial Insurance Guide — California Department of Insurance. Revised June 14, 2024; commercial property, inland marine, boiler and machinery/equipment breakdown, commercial general liability, commercial auto, umbrella, and workers compensation. California-focused guidance; confirm other jurisdictions and actual policy wording.
California commercial guide on general liability, property, equipment breakdown, inland marine and workers compensation.
- DWC Employer Information — California Department of Industrial Relations, Division of Workers’ Compensation. California employer workers compensation information; California-specific, including stated out-of-state employer examples.
California DWC employer information for California work-state questions.
- DWC FAQs for Employers — California Department of Industrial Relations, Division of Workers’ Compensation. Employer FAQ on California workers compensation requirements; one-or-more employee statement and separate sole-proprietor treatment.
- Protecting Temporary Workers — Occupational Safety and Health Administration. Staffing agency and host employer safety coordination; duties depend on facts and control. This is not insurance allocation.
OSHA temporary-worker safety coordination guidance.
- Business Interruption and Business Owner Policy — National Association of Insurance Commissioners. Business interruption and contingent business interruption; covered physical damage and dependent-business trigger qualifications.
- Small Business Insurance — National Association of Insurance Commissioners. BOP and exclusions; general liability and exclusions; professional liability, crime and cyber; business property. General educational descriptions, not policy terms.
Spot, a product of Tools for Enlightenment, publishes this guide and works in the commercial insurance market. This is general buyer education; policy terms and state-specific obligations determine coverage and requirements.
Updated 2026-09-28. Editorial Policy
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