Does Business Interruption Cover Equipment Breakdown?

A standard business-income section often depends on covered physical damage, while standard property coverage may exclude mechanical or electrical breakdown. 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.