Does Business Interruption Cover Equipment Breakdown?
Only if the policy covers the equipment breakdown and includes related business-income protection.
A machinery endorsement may add it, but a broken machine alone does not guarantee payment. A specialized equipment-breakdown endorsement can add coverage for machinery failure and may extend to income loss, but the covered equipment, cause, and consequential losses are defined by that endorsement. A broken machine does not automatically trigger business income.
Review both the property exclusions and machinery endorsement. Check whether income and extra expense are included, the waiting period, equipment schedule, inspection duties, and spoilage or utility interactions. For refrigeration or production machinery, compare the equipment limit with the business interruption limit and ask how the form handles partial production.
