How much does equipment breakdown coverage cost?

Equipment breakdown pricing depends on equipment inventory, type of business, spoilage exposure, and the limits selected. Most small to mid-market businesses add equipment breakdown as an endorsement to a business owners policy or commercial property policy for $200 to $1,500 annually, with $50K to $250K in coverage limits. Restaurants and food-service businesses with substantial refrigeration typically pay toward the higher end because spoilage is a real exposure. Manufacturing operations with high-value production equipment may need standalone equipment breakdown policies with limits in the $1M+ range, which can cost $3,000 to $25,000+ annually. The pricing is generally inexpensive relative to the catastrophic risk it covers, so most carriers and agents recommend including it on virtually every commercial account.