Which coverage type primarily addresses losses due to utility failures?

Equipment breakdown coverage is specifically designed to address losses resulting from the failure of equipment, including situations that involve utility failures. This coverage protects businesses from the financial impact of unexpected breakdowns, including those caused by electrical, mechanical, or pressure failures, as well as failures of the utility services that are essential for the operation of the business.

This type of coverage ensures that when equipment fails due to a utility issue, the business can receive financial assistance to cover repair expenses, replacement costs, or lost income during the downtime. Since utility failures directly affect the operational capacity of the equipment, this coverage is crucial for mitigating loss and maintaining business continuity.

On the other hand, business interruption coverage is generally designed to address loss of income due to a covered property loss, but it does not cover the physical damage to equipment itself. Commercial property damage coverage primarily focuses on the property itself and does not specifically account for losses tied to equipment failure. General liability coverage provides protection against third-party claims for bodily injury and property damage but does not address losses related to utility failures.