Find the best equipment breakdown insurance rates for your business

KBD is an equipment breakdown insurance broker with 40+ years of experience in the industry.

We offer boiler & machinery coverage to small and medium sized companies located within the provinces of Quebec & Ontario.

Comparing rates from Canada’s leading equipment breakdown insurance companies
Boiler & machinery coverage we provide
Mechanical breakdown

Protection against sudden and accidental machinery breakdown.

Artificially generated current

Coverage for electrical arcing and power surges that cause damage to your business’ property.

Boiler explosion

Insurance if a pressure vessel ruptures and causes damage to your business or a third party.

Speak with the same expert every time you call

Your own dedicated representative.

If you are looking for peace of mind and to save time – you need someone who knows how to handle your affairs. KBD provides each customer with the same dedicated commercial insurance expert to handle all your insurance needs.

Our clients say it best

More than 600 5-star reviews on
Leah N.
“Great service, very easy and well explained procedures and information needed for insurance. Jordan was great to work with, and had excellent communication skills. 10/10 recommend.”
Shawn B.
“Greg is always making sure all my insurance needs are covered. Excellent service and very responsive.. thanks again!”
Nathan T.
“My first time ever getting insurance for a car and it was super simple. I spoke to Erika who was super nice and answered all my questions, and provided everything I needed!”
Brian B.
“Great experience. As a new to Quebec driver who just bought a car I got my insurance processed over the phone in less than 20 minutes. Very efficient, easy to understand and good coverage.”

Get your boiler & machinery quote today

Equipment breakdown insurance FAQs

What is equipment breakdown insurance?

Equipment breakdown insurance is a type of property insurance that can help businesses recover financial losses resulting from property damage, business interruption, and spoilage.

There are 3 common situations that would fall under your equipment breakdown coverage:

Mechanical breakdown — to qualify, it must happen suddenly and accidentally

For example: A restaurant’s refrigerator breaks down and its food spoils.

Artificially generated current — such as electrical arcing

For example: An office building has a power outage and when the power comes back on, lack of proper surge protection causes an expensive scanner to stop working.

Boiler explosion — less common in current manufacturing plants

For example: A thermostat malfunctions causing a hot water tank to explode.

Why buy boiler and machinery insurance?

Because those coverages are not included in a typical commercial property insurance policy.

If you own a building, your property insurance covers you for fire, flooding, lightning, earthquake, and more. But you’re not covered for equipment breakdown — in other words, mechanical or artificially generated current-related accidents. A boiler and machinery insurance policy puts those exclusions back into your coverage. 

There’s another bonus to adding a boiler and machinery insurance policy: Government agencies require companies to have their boilers and pressure vessels inspected every few years, and inspections conducted by equipment breakdown insurance brokers and companies can satisfy those government requirements.

Is equipment breakdown the same as boiler and machinery insurance?

Yes, the two terms can be used interchangeably.

Does equipment breakdown cover wear and tear?

Nope, you won’t find any insurance policy anywhere that covers wear and tear.

What type of equipment can be insured on a boiler and machinery policy?

  • Steam boilers
  • Hot water tanks
  • Pressure vessels
  • Refrigeration & air conditioning systems
  • Motors 
  • Generators
  • Compressors
  • Pumps
  • Engines
  • Fans
  • Blowers
  • Gear sets
  • Turbines
  • Transformers
  • Electrical switchgears
  • Electronic equipment
  • Most production & processing equipment

Equipment breakdown claims examples

A commercial air conditioning unit breaks down suddenly and accidentally.

We’re not talking about your run-of-the-mill home AC unit. We mean the big units you often see on the roof of commercial buildings. The maintenance or replacement costs for those would run pretty steep, especially if the job requires big equipment like a crane.

A restaurant’s refrigerator breaks down resulting in food spoilage.

This applies to food distributors as well, especially those handling seafood that has to stay at a certain temperature or frozen. Equipment breakdown is an important piece of insurance for these businesses.

A manufacturer that has one large machine of its kind that is essential to its entire process.

If that machine breaks down and can’t run for two weeks, the business is essentially shut down for that period. Equipment breakdown would reimburse the company’s income lost as a result of the machine not being in use.

What isn’t covered on an equipment breakdown policy?

All the coverages that come standard on a commercial property insurance policy are absent from equipment breakdown insurance:

  • Fire
  • Smoke 
  • Water
  • Wind
  • Earthquake
  • Wear and tear — actually, you won’t find any policy anywhere that insures wear and tear.

Does boiler and machinery insurance cover food spoilage?

Restaurants and food distributors should get boiler and machinery insurance to cover food spoilage. If a refrigerator breaks down causing large amounts of product to go bad, this policy can recoup the financial losses.

What is equipment breakdown insurance?

Equipment breakdown insurance is a type of property insurance that can help businesses recover financial losses resulting from property damage, business interruption, and spoilage.

There are 3 common situations that would fall under your equipment breakdown coverage:

Mechanical breakdown — to qualify, it must happen suddenly and accidentally

For example: A restaurant’s refrigerator breaks down and its food spoils.

Artificially generated current — such as electrical arcing

For example: An office building has a power outage and when the power comes back on, lack of proper surge protection causes an expensive scanner to stop working.

Boiler explosion — less common in current manufacturing plants

For example: A thermostat malfunctions causing a hot water tank to explode.

What type of equipment can be insured on a boiler and machinery policy?

  • Steam boilers
  • Hot water tanks
  • Pressure vessels
  • Refrigeration & air conditioning systems
  • Motors 
  • Generators
  • Compressors
  • Pumps
  • Engines
  • Fans
  • Blowers
  • Gear sets
  • Turbines
  • Transformers
  • Electrical switchgears
  • Electronic equipment
  • Most production & processing equipment

Why buy boiler and machinery insurance?

Because those coverages are not included in a typical commercial property insurance policy.

If you own a building, your property insurance covers you for fire, flooding, lightning, earthquake, and more. But you’re not covered for equipment breakdown — in other words, mechanical or artificially generated current-related accidents. A boiler and machinery insurance policy puts those exclusions back into your coverage. 

There’s another bonus to adding a boiler and machinery insurance policy: Government agencies require companies to have their boilers and pressure vessels inspected every few years, and inspections conducted by equipment breakdown insurance brokers and companies can satisfy those government requirements.

Equipment breakdown claims examples

A commercial air conditioning unit breaks down suddenly and accidentally.

We’re not talking about your run-of-the-mill home AC unit. We mean the big units you often see on the roof of commercial buildings. The maintenance or replacement costs for those would run pretty steep, especially if the job requires big equipment like a crane.

A restaurant’s refrigerator breaks down resulting in food spoilage.

This applies to food distributors as well, especially those handling seafood that has to stay at a certain temperature or frozen. Equipment breakdown is an important piece of insurance for these businesses.

A manufacturer that has one large machine of its kind that is essential to its entire process.

If that machine breaks down and can’t run for two weeks, the business is essentially shut down for that period. Equipment breakdown would reimburse the company’s income lost as a result of the machine not being in use.

Is equipment breakdown the same as boiler and machinery insurance?

Yes, the two terms can be used interchangeably.

What isn’t covered on an equipment breakdown policy?

All the coverages that come standard on a commercial property insurance policy are absent from equipment breakdown insurance:

  • Fire
  • Smoke 
  • Water
  • Wind
  • Earthquake
  • Wear and tear — actually, you won’t find any policy anywhere that insures wear and tear.

Does equipment breakdown cover wear and tear?

Nope, you won’t find any insurance policy anywhere that covers wear and tear.

Does boiler and machinery insurance cover food spoilage?

Restaurants and food distributors should get boiler and machinery insurance to cover food spoilage. If a refrigerator breaks down causing large amounts of product to go bad, this policy can recoup the financial losses.