Commercial kitchen equipment is expensive and essential. When your walk-in cooler fails, your fryer breaks down, or your HVAC dies during a heat wave, the costs extend beyond repair - you lose inventory, revenue, and potentially customers. Equipment breakdown coverage, an essential add-on to property insurance, protects against these mechanical and electrical failures.
What Equipment Breakdown Covers
Equipment breakdown coverage (also called boiler and machinery coverage) covers sudden, accidental breakdown of equipment including:
- Refrigeration systems (walk-ins, reach-ins, freezers)
- HVAC systems (heating, cooling, ventilation)
- Cooking equipment (ovens, fryers, grills)
- Electrical systems and panels
- Dishwashers and ice machines
- POS systems and computers
What Standard Property Doesn't Cover
Standard property insurance covers damage from external events (fire, storm, theft). It does not cover internal mechanical or electrical failure - that's why equipment breakdown is essential.
Example
Your walk-in compressor fails on a Saturday night. $15,000 in inventory spoils, you lose $8,000 in business while closed, and repairs cost $5,000. Standard property pays nothing (no covered peril). Equipment breakdown covers the repair, spoilage, and business income loss.
Coverage Components
- Repair/replacement: Cost to repair or replace failed equipment
- Spoilage: Food and inventory lost due to equipment failure
- Business income: Lost revenue while equipment is being repaired
- Extra expense: Temporary equipment rental, expedited repairs
Frequently Asked Questions
Is equipment breakdown included in my BOP?
It depends on your policy. Some BOPs include basic equipment breakdown coverage. Others offer it as an optional endorsement. Review your policy or ask your broker to confirm coverage and limits. Given the critical nature of restaurant equipment, this coverage is highly recommended.