Boiler & Machinery / Equipment Breakdown for commercial landlords

Commercial property covers external causes of damage (fire, wind, theft) but excludes internal mechanical and electrical breakdown — worn bearings, shorted windings, arcing, compressor failure. Equipment breakdown is the coverage that pays when the system simply fails.

Yes. Elevator motors, drives, controllers, and the mechanical systems that fail from wear or electrical surge are covered equipment. An elevator outage is one of the most disruptive losses a multi-tenant building can suffer, and this coverage pays to repair it fast.

Yes — and that's often the larger loss. When a chiller or boiler fails and tenants can't operate, the resulting loss of rental income and extra expense is covered. We size the restoration period to how long a major system actually takes to replace.

A manufacturer warranty covers specific equipment for a limited time and often excludes the resulting damage and downtime. Equipment breakdown covers the repair, the resulting property damage, and the business-interruption loss — and it applies across all covered systems, not just one.

It's typically one of the most cost-effective coverages in a commercial property program — a small percentage of the property premium, given the frequency and severity of mechanical failures in commercial buildings. We include it as standard in most programs.

Coverage applies to sudden accidental breakdown regardless of age, though wear-and-tear alone isn't a covered cause. If an aging compressor short-circuits and fails, that's covered; if it simply wears out gradually, that's maintenance. We help you distinguish and document.

Essentially every commercial building owner. If the building has a boiler, chiller, central HVAC, elevator, or main electrical service — and tenants who depend on climate control or power — you need it. The cost of a single major failure easily justifies the premium.

Most commercial building owners pay $750–$2,500 a year for base Lessor's Risk Only, with the full program (LRO, property, equipment breakdown, umbrella) running $2,500–$9,000. Cost depends on building value, construction, tenant mix, and location. We quote the full program in about 15 minutes.

Yes. Contractors Choice Agency is licensed in all 50 states and writes lessor's-risk and commercial property programs from the Sun Belt and Texas to the Northeast, Midwest, and West Coast.

About 15 minutes for a standard program. Once bound, we turn around certificates of insurance and additional-insured endorsements for lenders, tenants, and partners — usually within minutes.

LH-1 is the ISO class code for a Lessor's Risk Only building — a commercial property leased to tenants where the owner's only occupancy is as a landlord. Correct LH-1 classification keeps premium fair and ensures claims aren't denied for misclassification.

Yes — that is the central purpose of Lessor's Risk Only. If a tenant's operations cause a fire that damages the building or other tenants, LRO covers the owner's property loss and liability. Generic policies often mishandle this exact exposure.

Standard commercial property excludes internal breakdown. We add equipment-breakdown (boiler & machinery) coverage so failed HVAC, boilers, chillers, elevators, and electrical panels are covered, including the resulting business-interruption loss.

Most carry $1M/$2M on liability with a $2M–$5M umbrella, and property limits equal to the building's full replacement cost. We size limits to your building value, tenant exposure, and lender requirements.

If you or your maintenance crew drive company vehicles between properties, yes — personal auto excludes business use. We also add hired/non-owned coverage if employees drive personal vehicles for property work.

Often, yes. We have excess-and-surplus (E&S) and specialty markets for buildings with loss runs, high-hazard tenant mixes, older construction, or other exposures that standard markets decline.

Yes — your lease should require every tenant to carry general liability and name the building owner additional insured on a primary, non-contributory basis. We provide a sample lease clause and help track certificates.

You reach a person with context, not a queue. We respond within 2 hours, help you document the loss, and manage the claim with the carrier so it's paid correctly and your building keeps operating.

Commercial property leased to tenants has a specific risk profile that generic carriers exclude or misprice. A specialty broker knows the LH-1 class code, the markets that write each tenant mix, and how to manage a tenant-caused claim.