Equipment insurance is a type of insurance policy designed to cover the cost of repairing or replacing equipment used in a business operation. It can cover a wide range of equipment, from office equipment and machinery to vehicles and other specialized items used in a business.

With the proper coverage, businesses can have peace of mind knowing that their equipment is protected in the event of an unexpected incident. If you are considering equipment insurance, here is everything you need to know.

How Does Equipment Insurance Work?

Equipment insurance can cover the cost of lost income due to the equipment being out of service. It can also offer protection from accidents, theft, and natural disasters. 

Equipment insurance works by providing coverage for the repair or replacement of equipment that is damaged or lost due to an accident, theft, fire, or other covered peril. The policy pays for the cost of repairing or replacing the equipment up to the limits of the policy.

When a claim is filed, the insurer will typically cover the cost of repairs or equipment replacement minus any applicable deductibles. The insurer may also cover other costs associated with the repair or replacement, such as towing or storage charges.

Businesses that own or lease expensive equipment, such as machinery, computers, and office furniture, should consider purchasing equipment insurance to save the company from unexpected costs. 

By having equipment insurance, businesses can easily and quickly replace or repair damaged or lost equipment without having to worry about the financial burden. 

It can also help to conserve businesses from lawsuits in case of an accident due to malfunctioning equipment. Equipment insurance is an important type of insurance for businesses of all sizes and industries.

What Does it Cover?

Equipment insurance can save a business from unforeseen events that can cause damage or loss of expensive equipment. This type of insurance is especially important for businesses that use expensive equipment, such as mining companies or industrial factories.

Equipment insurance typically covers events such as fires, floods, thefts, and vandalism. It may also cover incidents such as accidental damage or malfunction. 

The extent of the coverage depends on the policy, but it often includes coverage for repair or replacement of the equipment, any lost profits due to the equipment being out of service, and any liability claims related to the damage or malfunction of the equipment. In addition, some insurance policies may provide coverage for additional expenses such as renting replacement equipment or legal fees.

Types of Equipment Insurance

Equipment insurance is offered in two different types: all risk and specified peril. All-risk policies cover any damage that occurs to equipment, regardless of the cause. Specified peril policies cover only certain types of damage, such as fire, theft, flood, or natural disasters. 

It is important to understand what types of damage are covered by each type of policy before purchasing a policy. Business owners should also compare different insurance policies and providers to find the best coverage for their business.


Equipment insurance is an important financial tool that can help protect businesses from the large financial losses that can occur due to the loss, theft, or damage of equipment. Ultimately, the peace of mind that equipment insurance can provide is invaluable.

Pascal Burke Insurance Brokerage Inc. can help you stay covered in your workplace. We provide business insurance in Lubbock, TX, including tools and equipment insurance. Get in touch with us today to learn how.