The ACORD 55 Equipment Breakdown Supplement is attached to the ACORD 125 when applying for equipment breakdown insurance — also known as boiler and machinery insurance. Equipment breakdown covers the sudden and accidental breakdown of covered equipment, including mechanical, electrical, pressure, and computer equipment. It fills an important gap that standard property insurance does not cover.
Equipment breakdown coverage is valuable for any business that relies on mechanical or electrical equipment: • Manufacturers and processors with production equipment • Restaurants and food service businesses (HVAC, refrigeration, cooking equipment) • Healthcare practices with diagnostic equipment • Office buildings with HVAC and elevator systems • Hotels and hospitality businesses • Any business that would suffer significant income loss if key equipment failed
Standard commercial property insurance covers external causes of damage — fire, wind, water, theft. But it specifically excludes mechanical breakdown, electrical breakdown, and pressure vessel explosions.
Equipment breakdown insurance covers the internal failure of covered equipment — a compressor that burns out, an electrical short that destroys a motor, a boiler that cracks from overpressure. It also covers the business income loss and extra expense that results from the equipment failure.
Equipment breakdown policies cover a broad range of equipment, usually defined as any equipment that runs on electricity, steam, or pressure:
• HVAC systems and refrigeration equipment • Boilers and pressure vessels • Electrical systems (transformers, switchgear, wiring) • Computer and communications equipment • Production and processing equipment • Elevators and escalators
The ACORD 55 collects information about the specific equipment to be covered:
• Type of equipment • Age and condition of the equipment • Inspection history (boilers and pressure vessels are often subject to state inspection requirements) • Any prior breakdowns or repairs • Business income exposure if equipment fails • Total value of all covered equipment
Not offering equipment breakdown to clients who have significant equipment — it's inexpensive relative to the exposure it covers
Not including the business income coverage extension when the client would suffer significant losses if equipment failed
Forgetting refrigeration spoilage coverage for restaurants and food-related businesses
Not asking about inspection history on older boilers and pressure vessels
Assuming the property policy covers equipment breakdown because it covers the equipment itself
Send your client a plain-English intake link. When they finish, the completed ACORD 55 and all required companion forms are generated and ready to submit.