The Sovereign advantage
To keep your operations running like a well-oiled machine, you need to invest in the protection of your equipment. This isn’t niche or specialized insurance; Equipment Breakdown is an important coverage as part of your comprehensive insurance portfolio. But that doesn’t mean your protection should be generic. With over 70 years of experience, our team is able to support the unique needs of your business.
A better experience
We believe in responsive and agile service when it comes to supporting our brokers and their clients. Our underwriters have local knowledge, backed by national expertise – all to serve you better.
No gaps in protection
Losses to your equipment aren’t always covered under your Property policy and there are exclusions that Equipment Breakdown is designed to fill. Whether your Equipment Breakdown coverage is attached to a Property policy or Standalone, we work with you and your broker to develop the right solution.
We can help mitigate Equipment Breakdown exposures and the associated risk through industry best practices. Learn more about how Sovereign’s in-house Risk Engineering team can add business value with Risk Assessments and Jurisdictional Inspections.
As industries, businesses and technologies grow and change, so does our appetite
In addition to Commercial Solutions (CS) protection, Sovereign’s Equipment Breakdown team offers products through our Specialty Lines Solution (SLS) department. We specialize in offering comprehensive coverage tailored for businesses and portfolios across various industry sectors. From manufacturing and processing to realty, hospitality and utilities, we understand the unique and emerging risks to your business. We’re dedicated to providing a tailored insurance product and solution that helps protect your assets, mitigate risks, and support your long-term success. Rely on Sovereign as your partner in resilience. We partner with brokers and their clients to develop a comprehensive, tailored solution.
Coverages designed to protect your business
Equipment Breakdown risk solutions protect against mechanical, electrical, and pressure vessel breakdown. We can provide coverage for a broad range of equipment, from HVAC equipment to production machinery, to all types of electrical and electronic devices. Equipment Breakdown coverage is a critical component to round out your insurance protection. Learn more about the extensions and endorsements we offer. Key Equipment Breakdown extensions offered include:
- Business Income
- Extra Expense
- Expediting Expense
- Production Machinery
Business Income is an optional coverage under an Equipment Breakdown policy that provides compensation for various types of lost income if your business is interrupted due to a covered equipment breakdown loss.
When it comes to protecting your business, Sovereign offers a single form that provides a few options to choose from:
- The Gross Earnings option provides coverage only until your insured property is repaired or replaced. As soon as your business resumes, the coverage stops paying, even if you have not returned to your full earning level.
- The Gross Profits option provides coverage for loss resulting from a reduction in sales, as well as increased cost of working, until your business returns to its normal, pre-interruption level.
- The Gross Rents option provides coverage for loss resulting from a reduction in gross rents and increase in cost of working, until your business returns to its normal, pre-interruption level.
Business Income coverages can be quite complex and have many conditions. Please consult with your broker to discuss the option best suited for your business.
When a claim arises and your business experiences a loss in income, sometimes the expenses incurred to sustain operations exceed potential earnings. This is where Extra Expense comes into play by helping you resume normal business operations.
When there’s a breakdown, it may be possible to make temporary repairs to get back up and running. At other times, you can pay a little extra to expedite the shipping of parts or new equipment. Expediting Expense coverage picks up reasonable and necessary extra costs (including overtime, and express or other rapid means of transportation) necessary to make temporary repairs and to expedite permanent repair or replacement. In today’s supply-chain environment this extension of coverage may be crucial.
Production machinery is used to produce all kinds of products and is found in virtually all manufacturing operations, including textile production, machine shops, and the food industry. These machines – such as hydraulic presses, extruders, paper machines, lathes, mills, and many more – process, form, cut, shape, grind or convey product. Sovereign’s Equipment Breakdown policy includes coverage for Production Machinery by default, to help protect these vital pieces of equipment and your business moving forward.
Spoilage coverage is intended to help reimburse businesses when refrigeration equipment failures ruin perishable items. Separate from Ammonia contamination coverage, the loss occurs when the atmospheric conditions are no longer maintained resulting in the discarding of the perishable products.
Ammonia is commonly used as a refrigerant. Separate from spoilage coverage, Ammonia contamination helps protect against damage or losses caused by accidental release or leakage of ammonia from insured equipment. The coverage helps mitigate the financial consequences of incidents involving ammonia related accidents and damage to goods.
*The information on this page is provided for informational purposes only. Please refer to your policy for applicable coverage details, limitations, and exclusions.