Keep your business running when machines or equipment suddenly stop working.
Equipment Breakdown
Why Equipment Breakdown Cover Matters
Many businesses rely on equipment to keep things going from coffee machines and cool rooms to computer servers and manufacturing gear. When something breaks down, it can stop your operations, cost time and money, and cause serious delays. Standard property insurance usually does not cover equipment that breaks from an internal fault like electrical failure, overheating, or mechanical problems.
That is where Equipment Breakdown Insurance comes in. It helps cover the cost of fixing or replacing broken equipment. It can also cover the income you lose while the gear is down. This type of insurance is useful for many types of businesses, including cafes, printers, warehouses, hair salons, factories, and more.
We help small and medium-sized businesses across Australia get the right cover for the machines they rely on every day.
Key Features
- Covers breakdowns from mechanical or electrical failure
- Includes repair or replacement costs
- Covers computers, air conditioners, fridges, ovens, and more
- Optional cover for loss of stock due to temperature change
- Can include loss of income caused by the breakdown
- Works well as part of a business insurance pack
What’s Covered?
This insurance can help when equipment breaks from things like:
- Electrical short circuits
- Motor burnout or fuse failure
- Internal breakdown of machinery
- Overheating, pressure, or mechanical stress
- Power surges causing computer damage
- Compressor or pump failure
- Damage during equipment restart
- You can choose to cover specific machines or groups of equipment, depending
on what your business uses most.
How Equipment Breakdown Insurance Helps You
When a key piece of equipment stops working, it can:
Stop your business from trading
Cause you to lose sales or bookings
Damage stock (like food or perishables)
Cost a lot to replace on short notice
Equipment Breakdown Insurance helps by:
Paying for repair or replacement costs
Helping cover loss of income while you wait for repairs
Keeping your business moving during unexpected downtime
Reducing the stress of finding emergency cash or credit
Common Claims We See
A restaurant’s cool room motor burns out overnight, spoiling all refrigerated food
A hair salon’s hot water system breaks, forcing the business to close for a day
A factory’s production machine breaks from a power surge, causing job delays
A printer’s press overheats and melts a key part, halting operations for two days
A café’s coffee machine motor fails during morning trade, affecting peak sales
A server crashes at a design studio, stopping staff from completing client work
Frequently Asked Questions
No. Equipment Breakdown Insurance covers sudden, accidental breakdowns from mechanical or electrical faults. It does not cover gradual damage from wear and tear or poor maintenance.
No. Contents insurance covers damage from outside events like fire or storms. It usually does not cover internal faults, overheating, or equipment failure. That is where this cover helps.
Yes. You can choose to cover just your most important machine or a group of machines. Your broker can help tailor the policy to your needs and budget.
This will depend on the insurer and their product wording. Discuss this with one of our brokers if this is a concern for you.
This will depend on the insurer and their product wording. Discuss this with one of our brokers if this is a concern for you.
Some policies have a waiting period before the loss of income cover begins. Discuss this with one of our brokers if this is a concern for you.
