Equipment Breakdown Coverage was traditionally known as Boiler and Machinery Insurance. Equipment Breakdown insurance is a supplemental coverage that protects business property against loss and legal fees that may result from malfunctions of specified equipment. Equipment Breakdown coverage will, in most cases, cover the cost of inspection and maintenance of equipment typically found in retail, office, manufacturing, churches, hospitals, and schools.

Common machinery systems are heating, compressors, gears, fans, pumps, ventilation, air conditioning, refrigeration, motors, generators, computers, and more. Policies can be written to cover the replacement of damaged or destroyed equipment, loss of profits and continuing expenses, or business interruptions which may have occurred due to the equipment breakdown.