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Equipment Breakdown

Coverage for Today’s Modern Equipment Risks

The Hanover’s enhanced Equipment Breakdown offering is designed to help protect your Commercial Lines clients against costly equipment breakdown losses.

Target Appetite

Equipment keeps all kinds of businesses going. Our Equipment Breakdown offering provides solutions for businesses that rely on equipment to keep them up and running, especially:

  • Contractors
  • Educational Institutions
  • Financial Institutions
  • Food Manufacturers
  • Hospitality – Hotels
  • Manufacturers
  • Real Estate
  • Printers
  • Religious Institutions
  • Restaurants
  • Retail
  • Technology
  • Wholesale

Coverage Description

Traditional Equipment Breakdown insurance covers the sudden and accidental, physical damage to equipment that requires its repair or replacement. It provides protection from damage caused by:

  • Short Circuits, Electrical Arcing, and Power Surges
  • Steam Explosion
  • Mechanical Breakdown
  • Centrifugal Force

It can pay for:

  • Direct Property Loss — The cost to repair or replace damaged equipment
  • Expediting Expenses
  • Loss of Business Income and Extra Expense
  • Service Interruption
  • Spoilage due to a covered equipment breakdown

Our expanded Equipment Breakdown offering goes above and beyond traditional risks to include five new coverages. These additional coverages are designed to address today’s modern equipment risks by providing protection against losses caused by increasingly common technology related failures. The new coverage enhancements include:

  1. Microelectronics Coverage*
    1. Covers failures that require microelectronics to be replaced whether or not such equipment shows signs of physical damage. Triggered when covered equipment suddenly stops functioning as it had been and that equipment or a part containing electronic circuitry must be replaced
  2. Cloud Computing Service Interruption
    1. Adds cloud computing services to service interruption coverage
    2. Triggering outage must exceed appropriate waiting period
  3. Service Interruption Data Restoration
    1. Data restoration coverage for lost data when there is a covered service interruption
    2. Triggering outage must exceed appropriate waiting period
    3. Data may be at the insured location or in the custody of the insured’s cloud computing service provider
  4. Off Premises Business Income, Extra Expense and Data Restoration Coverage:
    1. Extends payment for off-premises equipment breakdown to include business income, extra expense and data restoration, in addition to physical damage
  5. Public Relations Coverage
    1. Pays for public relations assistance to help manage a reputation that may be damaged by an interruption of business
    2. Applies if there is a covered loss of business income

*Subject to certain exclusions for: conditions remedied by normal maintenance, rebooting, reloading, or providing necessary power or supply; software or equipment incompatibility within 30 days of install; failure caused by insufficient size or capacity; exposure to adverse environmental conditions unless these conditions cause a loss of functionality

Value-Added Services

Jurisdictional Inspection Services

Many states and local governments require boilers and pressure vessels to be inspected periodically by commissioned inspectors. We partner with Hartford Steam Boiler (HSB) to provide jurisdictional inspections as a built-in benefit of our Equipment Breakdown offering so your clients avoid local fees in many jurisdictions and only pay the certificate fee.

Download and share the Jurisdictional Inspections Customer Information Sheet with Hanover Equipment Breakdown policyholders.


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