Equipment Breakdown Insurance

Ideal Accounts and Appetite

This program targets small- to mid-sized commercial property accounts that rely on mechanical, electrical, or pressure equipment. Typical fits include:

• Retail centers and strip malls with HVAC systems and refrigeration units
• Medical and dental offices with diagnostic or sterilization equipment
• Restaurants and food service operations with refrigeration and cooking systems
• Office buildings with servers, telecommunications gear, and electrical infrastructure

In short, if a client depends on equipment whose failure would cause costly repairs or business interruption, this program is worth considering.

Example scenarios: You might have a restaurant client facing high replacement costs if a walk-in freezer fails, or an office building where server downtime would disrupt multiple tenants—both are good candidates for Equipment Breakdown coverage through Colonial General.

Coverage Highlights and Advantages

Key coverages include:

• Protection for five common property exclusions:

1. Mechanical breakdown
2. Artificial electrical disturbance
3. Steam explosion
4. Breakdown of steam vessels and piping
5. Breakdown of hot water vessels and piping

• Covers direct physical damage to covered equipment and indirect losses such as business interruption or extra expense

• Resultant property damage to other covered property is included

• Statutory and jurisdictional inspections are provided at no additional cost

• Helps reduce your professional liability by filling gaps in property placements

• Simple to bundle with other policies — streamlined quoting and competitive pricing add value for clients

Types of Equipment Typically Eligible

• Electrical: transformers, motors, switchboards, circuit breakers, bus ducts
• 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 supports straightforward underwriting with tiered flat-charge pricing based on total property limit per location. Annual premiums can be prorated if coverage is added midterm, which makes it easy to place on existing accounts. Rates are competitive for the market segments described above.

Underwriting will focus on the condition, age, and maintenance of covered equipment, existing loss history, and exposure to overheating, corrosion, or poor installation practices. Accounts with well-documented maintenance programs and up-to-date inspections typically receive the best terms.

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; carrier options and placement (admitted vs. E&S) vary depending on the insured’s location and specific risk profile.

Why Work With Colonial General?

As a Managing General Agency and Excess & Surplus Lines broker, Colonial General combines deep niche expertise with flexible market access. Their underwriting team is responsive and experienced in placing specialized or harder-to-place risks. That combination helps you round out property accounts, reduce client disruption, and provide meaningful coverage enhancements without excessive complexity.

If you want to boost value for clients who depend on critical equipment—and reduce your own placement risk—this Equipment Breakdown program from Colonial General is a practical option to consider.

Frequently Asked Questions

Need help placing an account? Connect with a market specialist.