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A sudden equipment failure can paralyze your business in seconds — production stoppages, lost revenues, missed deadlines. Equipment Breakdown Insurance (also known as Machine Breakdown Insurance) protects your critical devices against accidental breakdowns, power surges and mechanical failures. At Assur360, our AMF-certified brokers compare offers from more than 30 insurers to find the right coverage for your business in Quebec.
EQUIPMENT BREAKDOWN INSURANCE — QUEBEC 2026
Protect your critical machines and devices
Complete coverage against sudden breakdowns, power surges and mechanical breakdowns. Free quote in 3 minutes with an independent broker.
Get my free quoteWhat is equipment breakdown insurance?
Equipment Breakdown Insurance is specialized coverage that covers sudden and accidental breakdowns of your machines and appliances. Unlike standard property insurance, it covers internal failures — electrical surges, mechanical breakdowns, boiler explosions, compressor failures — that are not the result of fire, theft or water damage.
Standard property insurance does NOT cover equipment breakdown
Mechanical breakdowns, short circuits, power surges, and boiler explosions are excluded from your property insurance policy. Without machinery breakdown insurance, your business assumes 100% of the costs of repairs, replacements and lost revenue.
The 5 categories of equipment covered
Machinery breakdown insurance protects a wide range of devices that are essential to your business. Here are the main categories covered.
Electrical equipment
Transformers, electrical panels, wiring, photovoltaic solar panels, generators. A power outage in a retail business can result in up to $3,000,000 in losses.
Refrigeration and air conditioning
Cold rooms, HVAC systems, compressors, air conditioning units. A temperature rise of 10 degrees is enough to break the chain of custody and destroy entire stocks.
Pressure vessels
Boilers, industrial cookers, sterilizers, hot water and steam production systems. A boiler explosion can cause more than $57,000 in damage and injure employees.
Communication Systems
Servers, network equipment, telephone systems, fire alarms, security cameras. Fragile electronic components are vulnerable to power surges and moisture. A telephone outage cost a Quebec real estate developer $39,000 .
Mechanical machines
Production equipment, elevators, pumps, fans, industrial motors, conveyors. Vibration, wear and tear and handling errors are common causes breakdowns on farms and plants.
What Machinery Breakdown Insurance Covers
Here are the types of claims covered by an equipment breakdown insurance policy in Quebec.
| Type of claim | Examples | Overcast ? |
|---|---|---|
| Sudden | mechanical failureMotor failure, bearing failure, shaft | failure✓ Yes |
| Electrical | damageOvervoltage, short circuit, electric | arc✓ Yes |
| Boiler | explosionOverpressure, safety | valve failure✓ Yes |
| Operation | errorImproper handling, overloading, programming | error✓ Yes |
| Business | interruptionLoss of income during repair or replacement | ✓ Endorsement |
| Normal | wear and tearCorrosion, rust, gradual | deterioration✗ No |
| Lack of maintenance | Lack of preventive maintenance, negligence | ✗ No |
Which companies need equipment breakdown insurance?
Any business that relies on machinery or devices for their operations should consider this coverage. Here are the most at-risk areas in Quebec.
Manufacturers and factories
Production lines, presses, industrial robots, CNC machines. A stop of a few hours costs thousands of dollars.
Restaurants and food
Cold rooms, commercial ovens, industrial dishwashers. The break in the cold chain destroys stocks.
Clinics and Hospitals
Imaging devices, sterilizers, ventilation systems, laboratory equipment. Lives depend on their proper functioning.
Construction and construction
Cranes, excavators, compressors, construction generators. Breakdowns delay projects and result in penalties.
Farms
Silos, irrigation systems, milking equipment, grain dryers. Breakdowns in the middle of the harvest season are catastrophic.
Commercial Buildings
Elevators, HVAC systems, boilers, emergency generators. Building owners are responsible for the proper functioning of the building.
The production shutdown costs more than the breakdown itself
In the majority of cases, the loss of revenue during the shutdown far outweighs the cost of repairing the equipment. Add the Business Interruption Endorsement to your machine breakdown policy to cover this loss of income — often the most significant.
Cost of Equipment Breakdown Insurance in Quebec
The cost of your machinery breakdown insurance varies depending on the value of your equipment, your sector of activity and your region. Here’s a look at typical annual premiums.
| Type of business | Value of equipment | Typical annual premium |
|---|---|---|
| Restaurant / business | $50,000 – $ | 200,000$500 – $1,500/year |
| Commercial | building$100,000 – $ | 500,000$800 – $3,000/year |
| Factory / Manufacturer | $500,000 – $ | 5M$2,000 – $15,000/year |
| Farm | $200,000 – $ | 2M$1,000 – $8,000/year |
*Indicative rates 2026. Your reward depends on your profile, your equipment and your history. Get your exact price in 3 minutes.
The most common causes of breakage
Understanding the causes of breakage helps you prevent losses and choose the right coverage for your business.
Power surges and electrical problems
Current variations, lightning strikes and short circuits are the #1 cause of equipment breakdowns in Quebec. They damage sensitive electronic components and can start fires.
Vibration and mechanical wear
Machines in constant motion experience vibrations that weaken bearings, belts and drive shafts. Breakage often occurs without warning.
Operation and handling errors
Overload, wrong settings, programming error. Human error causes a significant portion of breakdowns, especially during operator or shift changes.
Overpressure and safety failure
Boilers, pressure cookers and pressure systems are vulnerable to pressure build-up. Improper maintenance of the safety valve may result in an explosion.
Environmental conditions
Humidity, dust, extreme temperatures (especially relevant in Quebec with harsh winters). These factors accelerate the degradation of electronic and mechanical components.
AMF CERTIFIED BROKERS
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Get my free quoteEquipment Breakdown Insurance by Region in Quebec
Whether your business is in Montreal, Quebec City, Sherbrooke, Gatineau, Trois-Rivières, Saguenay, Drummondville or Thetford Mines, our brokers know the risks specific to your region. Manufacturing companies in the Montérégie and Chaudière-Appalaches regions face different needs than those in Greater Montreal. We adapt your coverage accordingly.
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Frequently asked questions about equipment breakdown insurance
Why choose Assur360 for your equipment breakdown insurance?
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