How does "equipment breakdown insurance" differ from property insurance?

The distinction between equipment breakdown insurance and property insurance primarily lies in the specific focus of coverage. Equipment breakdown insurance is designed explicitly to protect against losses stemming from the failure or malfunction of machinery and equipment. This includes issues like mechanical breakdowns, electrical failures, and similar incidents that can prevent equipment from functioning properly.

While property insurance covers a broad range of risks including physical damage to buildings and other structures, equipment breakdown insurance is more specialized. It does not extend to typical property damages caused by natural disasters or theft of equipment—these would fall under other types of insurance coverage. This specialized nature is why the correct answer highlights that equipment breakdown insurance specifically covers machinery and equipment breakdowns, differentiating it from the more general property insurance coverage.