Equipment Breakdown


Commercial property owners are particularly vulnerable when they operate electrical, mechanical or steam equipment.

Not only is such equipment hazardous and costly to repair, but it’s also typically not covered by standard property insurance. When confronted with unique hazards such as power surges, mechanical breakdowns or boiler overheating, businesses need coverage designed precisely for losses that equipment breakdown can cause.

Equipment breakdown coverage, conveniently bundled with our all risk property policy, can provide the extra coverage clients need to protect their property and equipment completely. Together with AIG’s best-in-class loss prevention services and dedicated claims staff, property owners can rest assured that if their equipment short circuits, their whole business does not have to shut down.

Features & Benefits

  • Claims specialists who have the ability to expedite restoration of operations through a vast national network of repair firms and part suppliers
  • Utilization of claims adjusters, who are engineers or technicians, and have the knowledge and experience to swiftly locate proficient repair firms or hard to find parts and components
  • Jurisdictional inspection service of boilers and pressure vessels; service focuses on proactive identification of objects that require an inspection and timely completion to help assure compliance with applicable laws or codes
  • Certification of inspectors by the National Board of Boiler and Pressure Vessel Inspectors and state authorities
  • Access to loss prevention consulting services including equipment risk assessments and infrared thermography


  • Available limits of up to $1 billion per risk on a worldwide basis
  • Costs to repair or replace damaged equipment
  • Business income lost due to total or partial business interruption
  • Extra expenses incurred to sustain normal operations, such as temporary equipment rental costs
  • Expenses incurred to speed repair or replacement of damaged equipment
  • Interruption of electrical service or other utilities that results in business interruption, extra expenses or spoilage