When most people think about insurance, they picture coverage for accidents, fires, or weather damage. But what happens when your furnace dies in the middle of a Lehigh Valley winter—or your restaurant’s refrigerator fails overnight? That’s where equipment breakdown insurance comes in.
This often-overlooked coverage could save you thousands by covering the internal failures that typical property policies don’t.
What Is Equipment Breakdown Insurance?
Equipment breakdown insurance protects against sudden, accidental failures of electrical, mechanical, or pressure systems. It’s not about external threats like fire or storms—that’s what property insurance is for. Instead, this coverage kicks in when a critical system unexpectedly fails from within.
Examples of Covered Equipment:
- HVAC systems
- Boilers and water heaters
- Refrigeration and walk-ins
- Computers and POS systems
- Home appliances (for personal lines)
- Elevators, pumps, and production equipment
Equipment Breakdown for Businesses
For commercial clients across Allentown, Bethlehem, and Easton, a single breakdown can shut down operations—and profits. Whether you run a dental office, a café, or a manufacturer, this coverage can help pay to repair or replace:
- Production machinery
- Heating or cooling systems
- Computer servers
- Power surge-damaged electronics
Bonus: Many policies also cover business income loss while repairs are being made.
Equipment Breakdown for Homeowners
Did you know homeowners can also add this coverage? In personal lines insurance, it often appears as an endorsement on your homeowners policy.
It covers:
- Broken air conditioning units
- Surge-damaged electronics
- Appliance motor failures
- Furnace or heat pump breakdowns
And it’s usually far more affordable than you’d expect—especially compared to a surprise $5,000 HVAC repair.
What’s Not Covered
This coverage is not a home warranty. It typically won’t pay for:
- Wear and tear
- Rust or corrosion
- Maintenance issues
- Cosmetic damage
It’s for sudden and accidental breakdowns—not aging equipment.
Why It’s Essential in the Lehigh Valley
Our region sees temperature swings, frequent storms, and older infrastructure in both homes and commercial buildings. Whether you’re a homeowner in Emmaus or a business owner in downtown Easton, one equipment failure can throw your budget—and comfort—into chaos.
Not sure if you’re covered?
Learn more about business insurance tailored for the Lehigh Valley. Contact us today!
