Property insurance may not cover an internal breakdown
A commercial property policy is designed around covered external causes of loss. Equipment breakdown insurance addresses a different problem: sudden and accidental mechanical, electrical or pressure-system failure, subject to the policy wording. That distinction matters when one failed motor, control panel, compressor or boiler can stop an operation.
The policy is not a maintenance contract. Wear and tear, corrosion, gradual deterioration and known defects are commonly restricted or excluded. The exact definition of a covered breakdown controls whether a claim responds.
What the policy may address
Available forms and endorsements can include:
- Repair or replacement of covered equipment after an insured breakdown
- Damage to other insured property caused by the breakdown
- Spoilage of temperature-sensitive stock when refrigeration equipment fails
- Business income loss and extra expense during a covered shutdown
- Expediting expenses needed to obtain parts or temporary equipment faster
- Data restoration or service-interruption extensions, if specifically included
Limits, deductibles and waiting periods may differ by coverage. Confirm whether diagnostic costs, hazardous substances, utility-owned equipment and equipment away from the premises are included.
Build an equipment schedule before requesting terms
List the equipment that would materially affect revenue, safety or customer service if it stopped. Include its age, value, capacity, maintenance history, backup arrangements and estimated replacement lead time. Boilers, HVAC systems, production machinery, refrigeration, electrical distribution, elevators, medical equipment and computer-controlled systems can all require different underwriting information.
Pair that inventory with a realistic interruption estimate. The business interruption page explains why repair time alone may not reflect the full recovery period.
Inspection requirements remain separate
Insurance does not replace regulatory inspection or maintenance. TSSA states that owners and operators of boilers and pressure vessels regulated under Ontario Regulation 220/01 must hold a valid Certificate of Inspection for each regulated device. Applicability and exemptions depend on the equipment. Confirm current requirements directly with TSSA or a qualified specialist.
Keep inspection certificates, service logs, repair records and emergency contacts accessible. An insurer may ask for them during underwriting or a claim.
Review the operational consequence, not just equipment value
Two machines with the same replacement cost can create very different losses. Contact Westoak with an equipment list, property policy and continuity assumptions so the available equipment breakdown, property and income options can be reviewed together.