Why Your Dental Office Needs Equipment Breakdown Coverage

Why Property Insurance Isn’t Enough

Most dental offices carry commercial property insurance—and that’s good. It covers damage from things like fires, storms, and vandalism. But when your most expensive tools stop working due to internal mechanical or electrical issues, property insurance often says, “Not our problem.”

That’s where equipment breakdown coverage comes in. It fills a big gap by covering the cost to repair or replace essential office equipment when something breaks down on the inside.

What Is Equipment Breakdown Coverage?

This coverage helps pay for repair or replacement of your business equipment if it fails due to things like:

• Power surges

• Short circuits

• Motor burnout

• Electrical arcing

• Mechanical failure

It doesn’t just cover the cost of the repair—it also helps with lost income due to downtime, and even spoiled goods (like certain dental materials that require refrigeration).

Why It’s So Important for Dental Offices in Louisiana

Dental offices run on machines. A small failure can derail an entire day of appointments—or more.

Here’s what’s at risk if just one piece of your equipment fails:

• X-ray and imaging systems

• Dental chairs and delivery units

• Autoclaves and sterilizers

• Vacuum systems and air compressors

• Lab equipment (grinders, polishers, etc.)

• Office systems tied to HVAC or electrical panels

When these go down, patient care stops. Productivity drops. And the replacement timeline? Not quick.

What Does Equipment Breakdown Coverage Help Pay For?

This type of coverage is more than just a band-aid—it’s a full-on safety net for when your most important tools decide to quit.

Here’s what it can help with:

1. Repair or Replacement Costs

If a machine breaks down due to internal failure, this coverage helps pay to fix or replace it—even if the parts are expensive or custom-ordered.

2. Temporary Equipment Rental

Need to rent equipment while yours is being repaired? That can be covered too, helping you stay operational.

3. Business Income Loss

If downtime forces you to close or reschedule patients, this coverage can help cover the lost revenue.

4. Spoilage of Materials

If certain products or chemicals require refrigeration and go bad during an equipment failure, you may be covered for that loss as well.

What It Doesn’t Cover

This coverage isn’t a cure-all. Like every policy, there are limits.

Here’s what it doesn’t usually pay for:

• Wear and tear or lack of maintenance

• Cosmetic damage that doesn’t affect function

• Software crashes unrelated to equipment hardware

• Accidental physical damage (that’s property insurance territory)

That said, when it comes to the high-value machines that keep your practice humming, it offers protection where most policies stop short.

A Real-World Example from a Dental Practice

Let’s say your sterilizer overheats due to an electrical short. It won’t run, and your team can’t prep tools for procedures. You shut down for the afternoon while waiting on parts.

Without equipment breakdown coverage:

• You pay out-of-pocket for parts and labor

• You lose income from canceled appointments

• You may lose patients who don’t reschedule

With equipment breakdown coverage:

• The repair is covered

• You receive partial compensation for lost income

• You can afford to rent or borrow temporary equipment if needed

How to Know If You Have This Coverage

A lot of dentists assume this is part of their property insurance or business owner’s policy (BOP). Sometimes it is—but the coverage might be limited or excluded altogether.

Here’s how to check:

1. Review your commercial policy for “equipment breakdown” or “boiler and machinery” coverage.

2. Check the coverage limits and sub-limits.

3. Ask your insurance advisor if your most vital machines would be covered in case of internal failure.

If it’s not there, it’s time to consider adding it—especially if your practice relies on specialty tools or high-tech imaging systems.

The Cost of Not Having It

Dental equipment isn’t cheap. Most practices in Louisiana have tens of thousands of dollars invested in machines that make daily operations possible.

When one fails, the cost of replacement can hit fast. But the cost of lost production hits even faster. One broken compressor can shut down your ability to treat patients entirely—and your coverage should reflect that risk.

Get the Right Coverage Before Something Breaks

If your dental office relies on high-value equipment—and it does—then equipment breakdown insurance isn’t optional. It’s one of the smartest and most overlooked tools in protecting your business from downtime, lost income, and expensive surprises.

At Kastner Insurance, we help dental practices across Louisiana—from Lafayette and Baton Rouge to Alexandria and New Orleans—get the right commercial protection for their office. We’re experts in building insurance solutions that actually fit the way your practice works.

Contact us today to review your coverage and see if equipment breakdown protection is missing from your plan. Don’t wait for something to break to find out.