Business Equipment and Machinery Insurance for UK businesses
Cover for the machines, computers and specialist kit your teams use every day, whether it sits in the office, on the factory floor or travels between sites. A specialist broker can compare all risks cover for owned, leased and hired equipment on one schedule.
- Accidental damage and theft, at your premises or away
- Owned, leased and hired in equipment on one schedule
- Optional breakdown and data reinstatement cover
Reviewed October 2026 by the MyBusinessComparison.com editorial team
What is business equipment insurance?
Business equipment insurance covers the machinery, computers and portable tools a business relies on against loss, theft and accidental damage. It is usually written on an all risks basis, follows listed items to other sites and abroad, and can include breakdown and the cost of replacing lost data.
Firms buy it when equipment is valuable, specialist or mobile enough that the contents section of a property policy falls short: laptops and survey kit used off site, leased diagnostic machines, kitchen lines, presses or audio visual systems that move between venues.
Business equipment cover at a glance
- Covers
- Machinery, IT, telecoms, portable and specialist equipment
- Basis
- All risks, including accidental damage, theft, fire and flood
- Where
- At your premises, in transit, at other sites and abroad if agreed
- Ownership
- Owned, leased, financed and hired in items
- Usual options
- Breakdown, data reinstatement and increased cost of working
- Not for
- Contractors' plant on site, which has its own policy
What does business equipment insurance cover?
Policies are built around a list of items or categories with a value for each. These are the covers most schedules include or offer.
Production machinery
Lathes, presses, CNC centres, packing lines and printing machines at your premises, against sudden damage from fire, flooding, impact or a dropped load.
Read more about insurance for manufacturers
Computers and IT systems
Servers, networking, desktops, laptops and phone systems, usually on a new for old basis so a damaged machine is replaced with a current equivalent.
Portable and mobile equipment
Tablets, survey instruments, test meters, cameras and demo kit that staff take to customers, other sites and overseas trips, with territorial limits set on the schedule.
Specialist and scientific equipment
Diagnostic scanners, dental chairs, lab analysers and other high value kit, often leased with a condition that it is fully insured.
Read more about healthcare business insurance
Leased and hired in equipment
Your liability for equipment you lease, finance or hire, including continuing hire charges if it is damaged while in your care.
Breakdown
Sudden electrical or mechanical failure of machinery and electronic equipment, the risk most contents sections exclude.
Read more about engineering breakdown cover
Data reinstatement
The cost of restoring data and reloading software after physical damage to the hardware that stored it.
Increased cost of working
Hiring replacement equipment, outsourcing work or paying overtime to keep output going while damaged kit is repaired or replaced.
Read more about business interruption insurance
Covers often arranged alongside equipment insurance
- Cyber insurance: for malware, hacking and data breaches, which equipment policies do not cover
- Goods in transit: for stock and customers' goods carried in your vehicles
- A commercial combined policy: if you would rather insure equipment with buildings, stock and liability on one schedule
- Engineering inspection: for the compulsory examination of pressure plant and lifting equipment
Who needs business equipment and machinery insurance?
Businesses where equipment is expensive, hard to replace quickly or regularly leaves the premises. Cover is common in the sectors below.
Running cranes, diggers or site plant? That belongs under plant and machinery insurance, which is built for contractors' equipment on site.
- Manufacturers: production machinery and tooling where one damaged machine can hold up an order
- Engineering firms: test rigs, measuring instruments and machining centres in workshops and at customers' sites
- Clinics and healthcare providers: imaging, dental and treatment equipment, much of it leased
- Professional and office based firms: IT estates, laptops and phones used across offices and home working
- Technology companies: servers, development hardware and kit loaned to clients
- Hotels and restaurant groups: commercial kitchens, refrigeration, tills and audio visual systems
- Leisure operators: gym equipment, ride systems, lighting and sound rigs
- Event and production companies: staging, lighting and audio kit that travels between venues
- Electrical and building services firms: test equipment and specialist tools carried in vans every day
- Facilities management companies: floor machines, access equipment and kit left at client sites
- Security businesses: CCTV, radios, body cameras and monitoring equipment
- Farms and food producers: milking parlours, grading lines and on farm processing equipment
How much does business equipment insurance cost?
The premium follows what the kit is worth, where it goes and how well it is looked after. These factors move it most.
Replacement value
The total cost of replacing every item new. Insuring at less than this can reduce what is paid on a claim.
Type of equipment
Delicate electronics and specialist machines cost more to insure than robust office kit.
Where it is used
Portable kit that travels, is left in vans or goes overseas carries more theft and damage risk than equipment fixed in a building.
Security and storage
Alarms, locked stores, asset tagging and rules for leaving equipment in vehicles overnight are all taken into account.
Breakdown and extensions
Adding breakdown, data reinstatement and increased cost of working raises the premium in line with the extra cover.
Excess and claims
A higher excess on small items, and a clean record of losses, can both bring the price down.
What business equipment insurance does not cover
Each insurer sets its own terms. These limits are a common reason for rejected equipment claims.
- Wear and tear, gradual deterioration, rust and the slow failure of parts
- Theft from an unattended vehicle that was not locked, or where kit was left on view or overnight against the policy conditions
- Breakdown, unless the breakdown option has been added to the policy
- Viruses, hacking and corrupted data where the hardware itself is undamaged, which cyber insurance is designed for
- Contractors' plant hired or used on construction sites, which is covered under plant and machinery insurance
- Consumable parts such as tooling, bulbs, belts and print heads
- Faults a manufacturer's warranty or maintenance contract should put right
Business equipment insurance or the contents section of a property policy?
Many firms already insure equipment as contents. This is where a dedicated policy adds something.
| Feature | Business equipment insurance | Contents cover on a property policy |
|---|---|---|
| Where items are covered | At the premises, in transit, at other sites and abroad if agreed | Mainly at the insured premises |
| Events covered | All risks, including accidental damage | Often defined events, with accidental damage as an option |
| Breakdown | Available as an option | Usually excluded |
| Leased and hired kit | Specifically insured, with continuing hire charges | May be limited or need noting |
| Usually suits | Valuable, specialist or mobile equipment | Fixed office and general contents |
How to arrange business equipment insurance
A clear list of what you own and where it goes is the quickest route to accurate cover.
Build an equipment list
Group items by type and site, with serial numbers for high value pieces, and note anything leased or hired.
Set replacement values
Use the current cost of an equivalent new item, not what you paid or the book value.
Record where kit travels
Note what goes off site, how it is carried, where it is stored overnight and any trips abroad.
Check your contracts
Lease and hire agreements often say how equipment must be insured. Share them with the broker.
Compare the detail
Look at item limits, theft from vehicles conditions, the excess, breakdown terms and whether replacement is new for old.
Get your kit covered
Share your equipment list and values and a broker will find equipment cover that fits.
Get a quoteBusiness equipment insurance FAQs
How much does business equipment insurance cost?
It depends on the total replacement value, the type of equipment, how much travels off site, your security and whether breakdown is included. A broker can price different excess levels and options so you can see what each adds.
Is business equipment covered away from my premises?
Usually, if you list it as portable equipment. Most policies cover named items in transit, at customers' sites and at other locations in the UK, with cover abroad available for agreed trips. Fixed machinery is normally only covered at the premises named on the schedule.
Does business equipment insurance cover breakdown?
Only if breakdown is added. Standard all risks cover pays for accidental damage and theft, not for a machine that simply fails. For larger plant, breakdown is often arranged with engineering inspection and breakdown insurance.
Do I need to insure equipment I lease or hire?
Usually, yes. Most lease and hire agreements make you responsible for the equipment while you have it and require you to insure it. The policy can cover the equipment itself and any hire charges that continue while it is out of use.
Is equipment stolen from a van covered?
Often, but with conditions. Many insurers only pay if the vehicle was locked, the kit was out of sight and, for overnight losses, the van was garaged or in a secure compound. Check these terms carefully if staff carry valuable kit.
What is the difference between business equipment and plant insurance?
Business equipment cover is for machinery, IT and portable kit used in your own operations. Plant insurance is designed for contractors' plant such as excavators, cranes and access platforms working on construction sites.
Will I get a new item if equipment is damaged beyond repair?
Most policies replace items new for old, so you receive a current equivalent. Some apply an indemnity basis, deducting for wear, on older items or certain categories. Your schedule will show which basis applies.
Can I insure equipment worldwide?
Yes, for portable items that travel. Insurers usually set a territorial limit, such as the UK, Europe or worldwide, and may restrict the value of kit abroad at any one time. Tell the broker where staff travel and for how long.
How do I get a business equipment insurance quote?
Fill in the form on this page and a specialist broker will take it from there. An equipment list with values, a note of where items are used and kept overnight, and copies of any lease or hire agreements make the process quicker.
Keep your machinery and kit working for you
Compare business equipment cover for owned, leased and portable kit with a specialist broker.