Does Commercial Property Cover Equipment Breakdown?
Not necessarily—standard commercial property may exclude mechanical or electrical breakdown; separate equipment-breakdown coverage may be needed for the machinery and related losses.
California Department of Insurance describes boiler-and-machinery coverage as protection for losses from machinery malfunction and notes that many commercial property policies exclude those losses. Terms vary: equipment-breakdown coverage may address repair costs and related losses, but the covered equipment and consequential expenses need review.
Check the property exclusions for mechanical or electrical breakdown and see whether a machinery or equipment-breakdown endorsement is attached. Review covered equipment, inspection duties, deductibles, limits, spoilage, and any business-income extension. Refrigeration failure can also cause stock loss, so confirm spoilage terms rather than assuming the equipment endorsement covers inventory automatically.
