What is Mechanical Breakdown Insurance?

One of the most important insurance coverages for food trucks is also one of the most misunderstood… Mechanical breakdown or equipment breakdown insurance covers the cost to repair or replace damaged equipment. More importantly it can protect lost income because of the breakdown. Food trucks have many pieces of equipment that are necessary for day to day operation to stay in business.

Here are some of the categories of equipment that are covered including time and labor:

  1. Mechanical, which includes motors (other than vehicle motors), generators, hoods, pumps, and potentially any specialized food truck equipment.

  2. Electrical, which includes transformers, electrical panels and cables.

  3. Computers and communications, which includes computer systems, point of sale systems, phone systems, voice mail systems, security systems and fire suppression systems.

  4. Air conditioners and refrigeration systems

  5. Boilers and pressure equipment

Food Truck equipment breakdown coverage examples

Equipment breakdown is one of our most common types of claims. Here are a few exam ple of claims we have paid on:

  • An ice cream truck was serving at a large festival. Their freezer compressor failed causing a large loss to inventory and an even larger loss of revenue for the weekend festival. We covered the replacement of the compressor, the loss of inventory and the loss of revenue.

  • A gourmet hamburger truck was at one of the regular service spots when their generator sucked up a plastic bag, damaging their generator and their revenue until they could replace it. We paid for a replacement generator and the loss of income.

  • A chicken and waffle truck had an exhaust hood fail causing them to shut down until the hood could be repaired. We paid for the repairs and loss of revenue.

Doesn’t my commercial property insurance cover equipment?

Yes, our food truck insurance program covers damages caused by covered external cause, such as a fire. However, equipment breakdown insurance covers damages caused by covered internal forces, such as power surges, electrical shorts, mechanical breakdowns, motor burnout or operator error.

If you have an auto policy and a separate general liability policy, you may not have equipment breakdown coverage. With the nature of your operations, it is essential that you carry this coverage. If you would like a review of your current insurance we can advise if you have this coverage or not and provide a no obligation comparison quote. If you have any questions about food truck equipment breakdown or anything else, please don’t hesitate to contact us.