Equipment Breakdown Policy Feature Checklist
What to confirm in a equipment breakdown policy — what's standard, what's often limited, and what to add if needed — plus the gap most often missed.
Pull out your current property policy or equipment breakdown endorsement and check the box next to each feature you can confirm it includes — anything unchecked is worth a quick conversation with your advisor.
Tick each feature you can confirm your policy includes — anything left unticked is a good question for your next policy review.
| Confirm? | Policy feature | What to confirm | Priority |
|---|---|---|---|
| Equipment Breakdown (Direct Damage) | Pays to repair or replace equipment after sudden electrical or mechanical failure — excluded from most property policies. | Standard | |
| Electrical Arcing & Power Surge | Covers damage from short circuits and surges — the leading cause of breakdown losses. | Standard | |
| Business Income & Extra Expense | Confirm breakdown losses trigger business income — some policies need it added. | Standard | |
| Spoilage | Covers perishable stock lost when refrigeration fails — often a small sublimit. | Often limited | |
| Expediting Expenses | Pays for rush shipping and overtime to repair faster — usually capped. | Often limited | |
| Utility Interruption | Covers losses when off-site power or water fails — often has a waiting period. | Often limited | |
| Data Restoration | Covers recreating data after a computer or server breakdown — usually sublimited. | Often limited | |
| Hazardous Substance Cleanup | Covers cleanup of refrigerants or chemicals released by a breakdown. | If needed | |
| Code Upgrades & Green Upgrades | Pays to replace with equipment that meets current code or efficiency standards. | If needed | |
| Boiler & Pressure Vessel Inspections | Many carriers provide required jurisdictional inspections. | If needed | |
| Solar, Battery & Generator Equipment | Confirm on-site energy systems are scheduled and covered. | If needed |
The gap most often missed in this coverage
The gap most often missed with equipment breakdown is assuming the property policy covers it. Standard property forms exclude mechanical and electrical breakdown, and electrical problems alone cause about half of these claims. The bigger loss is often the downtime and spoiled stock, not the repair — and many endorsements cap spoilage and expediting costs at small amounts. Confirm breakdown is added, that it triggers business income, and that spoilage limits fit your peak inventory.
Send us the checklist and we'll review your equipment breakdown coverage line by line, then market it across multiple carriers that compete for your account.
Related: Equipment Breakdown Insurance · Equipment Breakdown Supplemental (apply) · All coverage checklists
Frequently asked questions
What should a equipment breakdown policy include?
Standard features to confirm in a equipment breakdown policy include Equipment Breakdown (Direct Damage), Electrical Arcing & Power Surge, Business Income & Extra Expense. This checklist also flags the features that are often limited or sublimited and the ones to add if needed, with a plain-English note on each.
Is this checklist insurance advice?
No. It is a free educational tool to help you have a more informed conversation with a licensed professional. It affords no coverage and is not insurance, legal, or financial advice — only your actual policy language governs what is and isn't covered.
Can Cory Washington & Co. review my equipment breakdown coverage?
Yes. Share your checklist and we'll review your program line by line, market your account across multiple carriers, and explain the trade-offs in plain English. Cory Washington & Co. LLC is licensed in all 50 states.
This checklist is a free educational tool from Cory Washington & Co. to help you review your own coverage and have a more informed conversation with a licensed insurance professional. It is general information only — not insurance, legal, or financial advice, and not a recommendation to buy, change, or cancel any policy. Coverage terms, availability, limits, and requirements vary by policy, carrier, and state, and only the language in your actual policy governs what is and isn’t covered. Checking or leaving blank any item above does not indicate that you are adequately insured or under-insured. Using this checklist does not create a client, agency, or fiduciary relationship. Always consult a licensed professional about your specific situation.