Equipment Breakdown Insurance Calculator

Equipment breakdown insurance (sometimes called boiler & machinery coverage) is distinct from ordinary property insurance because it covers internal, non-impact failures — a burned-out motor, a cracked boiler, an electrical arc — that standard property policies typically exclude. This calculator prices the core equipment premium as 0.25% of total insured replacement value, multiplied by an equipment-type risk class that ranges from 1.0x for HVAC/refrigeration up to 1.8x for boilers and pressure vessels, since a ruptured pressure vessel carries far more catastrophic potential than a failed compressor. Average equipment age matters too: a fleet under 5 years old earns a 10% discount, and every year past 10 adds 3% to the rate, reflecting rising failure rates in aging machinery.

Two credits then apply — a deductible credit that scales with how large your deductible is relative to total equipment value (capped at 30% off), and a flat 10% credit if you attest to a documented preventive-maintenance program. Business interruption coverage, if you add a limit, is priced completely separately at a flat 1.5% of that limit — it is not adjusted by equipment type or age, since interruption risk depends more on redundancy and how quickly you can source a replacement than on the specific equipment class. The published rate-per-$1,000 output is meant for comparing this quote against a real broker's quote on an apples-to-apples basis.