Broken Promises Breakdown insurance can assure a quick fix.

It's an old type of insurance with a new name and a growingneed: Equipment breakdown insurance (traditionally called boilerand machinery insurance) has become an important part of a soundrisk management strategy for all types of companies.

Historically, this specialty insurance covered boilers andproduction machinery, explains Mark MacGougan, assistant vicepresident for product development with Hartford Steam Boiler Inspection and InsuranceCo. in Hartford, Connecticut. However, says MacGougan, the termequipment has come to mean much more than that, ranging fromtelecommunications systems to cash registers: "The waytechnology has evolved, just about every business is more dependenton equipment than they were even five or 10 yearsago."

The policy can also cover related property damage, lost businessincome and other costs incurred due to the breakdown. MacGouganpoints out that, for many companies, the cost of lost business dueto a breakdown is much more than the cost of repairing theequipment. Covered hazards range from electrical-related damage tomechanical breakdown.