Colonial General Insurance Agency, Inc. offers a comprehensive Equipment Breakdown Insurance program designed to help you provide essential protection for your clients’ property exposures. This coverage fills critical gaps in standard property policies by addressing losses due to mechanical or electrical failure, steam explosions, and more. It’s a valuable add-on that enhances your property quotes and helps you deliver a more complete risk management solution.
Ideal Accounts and Appetite
This program is ideal for small to mid-sized commercial property accounts that rely on critical machinery, electrical systems, or technology. Great fits include:
- Retail centers and strip malls with HVAC systems and refrigeration units
- Medical and dental offices with specialized equipment
- Restaurants and food service businesses with refrigeration and cooking systems
- Office buildings with computer servers, phone systems, and electrical infrastructure
If your client operates any facility with mechanical, electrical, or pressure systems, this coverage can help protect them against the high costs of repair, replacement, and business interruption.
Coverage Highlights and Advantages
Key Coverages Include:
• Protection for five common property exclusions:
- Mechanical breakdown
- Artificial electrical disturbance
- Steam explosion
- Breakdown of steam vessels and piping
- Breakdown of hot water vessels and piping
• Covers both direct damage to equipment and indirect losses such as downtime or lost income
• Resultant property damage to other covered property is included
• Statutory and jurisdictional inspections provided at no additional cost
• Helps prevent E&O exposures by rounding out property accounts
• Easy to bundle with other policies—streamlined quotes and affordable pricing add value for your clients
Types of Equipment Covered
- Electrical: transformers, motors, switchboards, circuit breakers, bus ducts, etc.
- Air Conditioning & Refrigeration: compressors, fans, coils, piping, vessels
- Boilers & Pressure Vessels: cookers, sterilizers, heating or process boilers
- Computers & Communications: servers, phone systems, environmental controls
- Mechanical: pumps, turbines, blowers, engines, gear sets
Underwriting Notes and Premiums
Colonial General offers convenient tiered flat charge pricing based on the total property limit per location. Annual premiums can be prorated if coverage is added midterm, making it easy to incorporate into existing accounts.
Rates are competitive, and the coverage provides strong value for insureds seeking to protect their operational equipment and avoid unexpected business interruptions.
Territories and Availability
This program is available to agents and brokers in the following states: Arizona, California, Colorado, Idaho, Nevada, New Mexico, Utah, and Wyoming.
Admitted markets are available in select states. Carriers vary depending on the insured’s location and risk profile.
Why Work With Colonial General?
As a Managing General Agency and Excess & Surplus Lines Broker, Colonial General brings deep expertise and flexible market access to help agents place tough or specialized risks. Their responsive underwriting team and strong carrier relationships make it easy to round out your accounts and provide meaningful coverage enhancements.
If you’re looking to boost value for your clients while minimizing your own E&O exposure, this Equipment Breakdown Insurance program is a smart addition to your property placements.
Frequently Asked Questions
What types of accounts are a good fit for this program?
Commercial property risks that depend on mechanical, electrical, or pressure-based equipment—such as offices, restaurants, retail centers, and healthcare facilities—are well-suited for this coverage.
Does this coverage include inspections?
Yes, statutory and jurisdictional inspections are included at no additional cost, helping your clients stay compliant and reduce risk.
Can this coverage be added midterm?
Yes, coverage can be added midterm, and annual premiums may be prorated accordingly based on effective date and property limits.
What states is this program available in?
This program is available in AZ, CA, CO, ID, NV, NM, UT, and WY.
Is this coverage available on an admitted basis?
Some admitted markets are available depending on the location and risk profile. Colonial General will help determine the best fit for each account.
Need help placing an account? Connect with a market specialist.