HSB BI&I - Commercial Equipment Breakdown Rider

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Equipment Breakdown Rider

Improve your commercial lines package the easy way, with Equipment Breakdown Insurance

The Equipment Breakdown Rider is an endorsement for commercial lines package policies, available to a number of Property and Casualty insurers in Canada. It is an easy way for brokers to include equipment breakdown insurance in the commercial lines packages with these insurers.

What's Covered?

Nearly everything that is mechanical, electrical or under pressure can be insured for loss due to breakdown. The most common types of equipment would include heating boilers, air conditioning and refrigerating units, electrical panels, computers and telephone systems.

Eligible Risks

Any non-manufacturing and non-processing risk account not exceeding $20,000,000 in value for building owners and $1,000,000 for tenants. Three coverage options are available to suit a variety of needs:

Option 3 - Comprehensive Plus

Under this option it is possible to insure nearly everything mechanical and electrical in small to mid-sized business, whether tenanted or owner occupied. This coverage protects the kind of electronic equipment that businesses depend upon most, such as:

  • Computers, Printers
  • Telephone Systems
  • Photocopiers, Fax Machines
  • Diagnostic Equipment
  • Security Systems
  • Stoves, Ovens
  • Retail Scanning Equipment


Coverage is also included on equipment used to provide human comfort or services in a building, such as:

  • Boilers, Hot Water Tanks, Heat Exchangers
  • Air Conditioning and Refrigeration Equipment
  • Mechanical Pumps, Fans and Compressors
  • Electrical Motors, Transformers and Panels


Option 3 also includes spoilage coverage. Loss of the insured's perishable goods that spoil as a result of a breakdown is covered to the policy limit. Subject to terms, conditions and exclusions of the policy.

Option 2 - Broad Coverage

This option provides the same coverages as Option 3, except it:

  • excludes Electronic Equipment Coverage
  • excludes Spoilage Coverage


This option is appropriate for those businesses which do not have Electronic Equipment or Spoilage exposures. Subject to terms, conditions and exclusions of the policy.

Option 1 - Basic Coverage

This option provides the same coverages as Option 3, except it:

  • excludes Air Conditioning and Refrigeration Equipment
  • excludes Electronic Equipment Coverage
  • excludes Spoilage Coverage


This option is appropriate for those businesses which do not have any of the above three exposures. Subject to terms, conditions and exclusions of the policy.

These Additional Coverage Features Apply To All 3 Options
  • Business interruption/Extra expense if provided in property coverage section
  • Bylaws
  • Professional/Auditors fees if provided in property coverage section
  • Hazardous Substances to a limit of $100,000
  • Expediting Expenses
  • Broad Definition of Insured Equipment
  • Broad Definition of Accident/Breakdown
  • Service Interruption (electricity, telephone, heating and cooling)

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This publication is available exclusively to Munich Re clients. Please contact your Client Manager.