08/12/2026
No Oven, No Pizzas: Why Equipment Breakdown Insurance Matters
Think your commercial property insurance has your equipment covered? Not always. Here's the gap most business owners don't realize exists.
The difference:
Commercial property insurance covers damage from external perils — fire, storms, vandalism, theft. But it does NOT cover equipment that simply breaks down or malfunctions.
That's where equipment breakdown insurance comes in.
What it covers:
✅ The cost to repair or replace malfunctioning equipment or machinery
✅ Lost income and property damage resulting from that downed equipment
A real-world example:
A freezer in a grocery store or food warehouse stops working. Here's how coverage plays out depending on the cause:
🔥 Fire damages it → covered by commercial property insurance
🌊 Flood damages it → NOT covered (unless you have separate flood insurance)
⚡ A power surge blows the compressor → covered by equipment breakdown insurance
Same freezer, same damage but very different coverage outcomes.
What's typically included:
✔️ Mechanically driven equipment (motors, pumps, generators, ovens, cash registers)
✔️ Technology (computers, phones, security & fire alarm systems)
✔️ Electrical systems & power surge damage
✔️ HVAC, refrigeration & air control systems
✔️ Boilers and related equipment
✔️ Damage from operator error
What's usually excluded:
❌ Normal wear and tear
❌ Age-related breakdowns
❌ Damage from rust, mold, or pests
❌ Failure to maintain equipment (some insurers may even require maintenance records)
Whether you run a manufacturing plant or a pizza shop, if your business depends on equipment to operate, this coverage matters. We can help you compare your equipment inventory to policy details and build the right protection for your risk profile.
Let's talk about what equipment breakdown insurance could mean for your business.
📞 204-953-4000 or 204-257-3076
🌐 www.crossroadsinsurance.ca
📍 850 Keewatin St or 2-851 Dakota St
