(And Why Your Property Policy Probably Doesn’t Cover It)
Colorado businesses rely on more equipment than ever—HVAC systems, servers, point-of-sale tools, refrigeration units, brewing equipment, and more. Yet many owners assume their commercial property policy will cover them if something suddenly breaks down.
Here’s the surprise most people don’t learn until it’s too late:
Property insurance typically covers damage from external causes (like fire or wind), not internal mechanical or electrical failure.
That’s where Equipment Breakdown Coverage—formerly called Boiler & Machinery—comes in.
What Is Equipment Breakdown Coverage?
Equipment Breakdown is designed to help protect your business when essential systems fail due to mechanical breakdown, electrical arcing, power surges, motor burnout, or operator error.
It’s relevant for everyday Colorado businesses — not just manufacturers.
If your business relies on equipment (and most do), this coverage can help fill a major gap.
Real-World Colorado Examples
1. HVAC Failure During Peak Season
Think about a Colorado July with 95° heat—or a winter cold snap that dips below zero.
- If your HVAC system’s compressor burns out, your property policy likely won’t cover the mechanical failure that caused it.
- Offices may have to close
- Retail spaces can’t stay comfortable for customers
- Restaurants risk unsafe temperatures for food storage.
Equipment Breakdown can help cover the sudden breakdown itself — and may include options for spoiled inventory or business interruption, depending on the policy.
Server or Technology System Failure
More Colorado businesses are relying on cloud-based tools, but many still have on-site hardware, networking equipment, or point-of-sale systems.
If your server fries due to an electrical surge or a critical component burns out, property insurance usually considers this an internal failure—not a covered cause of loss.
- With Equipment Breakdown, businesses may have protection for:
- Electrical arcing
- Sudden and accidental breakdown
- Replacement or repair of damaged components
This can reduce downtime and protect revenue when technology fails unexpectedly.
3. Refrigeration Breakdown for Restaurants, Breweries & Food Service
This is one of the most common (and costly) risks for Colorado businesses in food and beverage.
A single failed refrigeration unit can lead to:
- Spoiled product
- Lost revenue
- Health code issues
- Operational shutdown
And unless the loss was caused by a covered peril—like a fire—most property policies won’t cover the internal mechanical failure itself.
Equipment Breakdown can help address the failure of:
- Walk-ins
- Glycol chillers
- Freezers
- Kegs and brewing systems
- Ice machines
- Display coolers
It’s one of the most important coverages for breweries, restaurants, cafes, food trucks, and specialty grocers across Colorado.
Why Colorado Businesses Often Miss This Coverage
Because “equipment breakdown” sounds like something manufacturers or large facilities need.
But in reality, it’s often the small internal failures that create the biggest headaches.
Common triggers include:
- Power surges (especially during Colorado storms)
- Worn components
- Motor burnout
- Computer circuitry issues
- Electrical arcing
- Overheating
Without this coverage, business owners often end up paying out of pocket.
Who Should Consider Equipment Breakdown Coverage?
This coverage is especially important for Colorado businesses that rely on:
✔ HVAC systems
✔ Refrigeration
✔ Commercial kitchens
✔ Brewing equipment
✔ POS systems
✔ Servers, routers, and on-site tech
✔ Elevators or mechanical systems
✔ Specialized tools or machinery
Even professional offices—law firms, CPAs, consultants—can be affected by electrical surges or server failures.
A Better Way to Support Colorado Businesses
At Conexus, we believe in helping Colorado businesses stay prepared, protected, and resilient—not just insured. We work with clients to help identify potential gaps, understand what’s included in their policies, and make informed choices that support long-term stability.
Every business is unique, so we take the time to understand what systems you rely on and how a sudden breakdown could impact your operations.
Let’s Make Sure You’re Covered Where It Counts
Whether you already have Equipment Breakdown Coverage or want to understand how it fits into your overall business insurance strategy, we’re here to walk through it with you in a clear, straightforward way—so you can feel confident in the decisions you make for your business.