https://completemarkets.com/company/colonialgeneral/Equipment-Breakdown-Insurance/
Policy Highlights:
Colonial General Insurance Agency, Inc. offers an Equipment Breakdown Insurance program that helps you add essential protection to your clients’ property placements. This coverage fills gaps common to standard property policies by addressing losses from mechanical or electrical failure, steam explosions, pressure-vessel breakdowns, and related causes. It’s an easy way to enhance property quotes, reduce client downtime risk, and limit your own E&O exposure by rounding out accounts.
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:
Mechanical breakdown
Artificial electrical disturbance
Steam explosion
Breakdown of steam vessels and piping
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
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 to the insured, which helps with compliance and risk reduction.
Can this coverage be added midterm?Yes. Coverage can be added midterm, and annual premiums may be prorated based on the 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 location and risk profile. Colonial General will work with you to determine the best placement for each account.
Need help placing an account? Connect with a market specialist.