Ontario residents don’t want to pay more for their insurance than they need to, and that is especially true for business owners looking to keep the costs of doing business down. Given the vast number of factors that could potentially impact the cost of your machinery breakdown insurance in Ontario, you might begin to wonder if any of these factors are within your control. There are a few actions you can take to keep costs lower. They include:

• Improve your workplace safety practices and other risk management to minimize the chances of a breakdown, fire or other accident
• Avoid making claims on smaller incidents to keep your claims record clean
• Increase your deductible for your business insurance, including for equipment breakdown insurance

Ontario businesses rely on a lot of expensive machinery or equipment. Equipment breakdown insurance in Ontario, also called boiler and machinery insurance, is a form of business insurance designed to help pay for the replacement or repair of highly expensive types of machinery that have suddenly or accidentally broken down.

For example, you run a large factory that builds cars, and you have manufacturing equipment that is vital to your company's operations. While your employees are probably capable of performing some of the tasks done by your key equipment, they won’t be nearly as efficient. Worse yet, your mechanical equipment performs some tasks that can’t be done by your employees at all. That means your company can’t produce its product anymore and will have to pay for costly repairs or replacement of the damaged equipment, likely making a massive dent in your finances. If you have equipment breakdown insurance in Ontario, your insurance policy could cover the cost of repairs for or replacement of your insured equipment. This will give you peace of mind that you are covered even in a worst-case scenario.

Equipment breakdown insurance does not cover intentional damage, wear and tear, or lack of maintenance. It is designed for sudden losses the insured could not have prevented.

Many people are under the mistaken belief that having commercial property insurance will cover everything that happens on a business premises, including machinery breakdowns. Insurance in Ontario, however, is not so straightforward. Commercial property insurance is meant to protect your business premises from loss or damage caused by unexpected events and external factors, such as fire, theft, or vandalism. So if there was a fire on your property that destroyed a refrigeration unit, for example, your property policy will cover the costs of replacing it. It will not, however, cover the cost of fixing a piece of equipment should it unexpectedly break down. Any sudden and accidental breakdowns due to mechanical failures, electrical issues, power surges, operator errors, or other types of internal damage are covered by equipment breakdown insurance.

Ontario equipment breakdown coverage is meant to fill this gap in most commercial property insurance policies. This is because a business can have such a wide range of complex equipment and machinery, making it hard to account for every issue it may suffer. Additionally, by excluding breakdowns in commercial property policies, insurance providers can encourage businesses to maintain and take better care of their equipment to help reduce the risk of breakdowns impacting their business.

As a business’s insurance needs can differ so greatly, commercial insurance policies can’t account for absolutely everything, as what one business may need coverage for might be considered to be a waste of money by another business. However, policies can be customizable to include additional coverage for things such as product liability insurance, business interruption insurance, and equipment breakdown coverage to help provide you with the comprehensive coverage you need to protect against business losses. By providing coverage options like equipment breakdown insurance, Ontario insurance companies can help bridge any coverage gaps, allowing you to safeguard your business against any mechanical and electrical breakdowns by your insured machinery.

Coverage includes electrical issues (power surges, short circuits, arcing), mechanical breakdowns, pressure-related issues, ruptures and explosions, operator errors, centrifugal force breakdowns, overheating and burnouts, and sudden malfunctions and accidental damage.