What does the equipment breakdown protection coverage exclude?

Equipment breakdown protection coverage focuses on damages and losses related to the breakdown of machinery and equipment, specifically addressing failures in mechanical and electrical components. Liability coverage is typically handled under separate policies, such as general liability, rather than within the equipment breakdown coverage.

This distinction is crucial because equipment breakdown protection is tailored to provide financial support for the repair or replacement of the equipment itself, not for liability that may arise from issues related to the equipment or its use. As a result, liability coverage is considered excluded from this specific type of insurance, as its requirements and coverage terms differ from those that apply to mechanical or electrical breakdown scenarios.

Understanding this coverage's scope helps ensure that businesses protect themselves appropriately against the specific risks associated with equipment failures, while also recognizing that broader liability claims require a different insurance policy.