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Home Insurance Coverages Equipment Breakdown

Equipment Breakdown

Cultivators, processors, manufactures, retailers and every business owner should highly consider this coverage. Very easy to quote and the cost is minimal. This coverage is offered by standard markets!

What is it?

Coverage for loss due to mechanical or electrical breakdown of nearly any type of equipment, including photocopiers and computers. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown. Resulting business income and extra expense loss is often covered as well. Equipment breakdown insurance is increasingly replacing traditional boiler and machinery (BM) insurance, in part simply because the title is more descriptive of the coverage provided. Also, today’s equipment breakdown policies typically provide slightly broader coverage than traditional BM policies, and they usually do not use the specialized terminology found in traditional BM policies.

https://www.irmi.com/online/insurance-glossary/terms/e/equipment-breakdown-insurance.aspx

What does it do?

Equipment Breakdown Insurance is less expensive they most people think. All business depend on equipment- heating and cooling systems, surveillance systems, point-of-sale and communication equipment. This equipment is subject to sudden and accidental breakdown. A breakdown is not only expensive to repair, but it also can cause business interruption and lost income when customers shop elsewhere.

Most standard property policies exclude equipment breakdown coverage. Equipment breakdown insurance pays for: Physical damage, business income or spoilage and extra expense to limit the equipment loss or speed repairs.

Here are some examples

Arcing damaged the main electrical distribution panel. Breakers blew and bus bars, wiring, and insulation melted. Food was contaminated with smoke. A generator was rented to provide partial power during the three-week repair.

Total Loss: $170,909

A compressor fan motor bearing failed, causing the food in a packing house’s cooler to spoil.

Total Loss: $79,236

A retail shop’s point-of-sale equipment, including electronic cash registers and credit card readers, shorted out after a power spike surged through the leased building’s electrical system.

Total Loss: $10,100

A utility service failure caused a high voltage surge and arcing to a business’ computer, phone, and surveillance system.

Total Loss: $36,000

This is a summary of coverages. For all coverages, terms, conditions and exclusions, refer to the actual insurance policy.

 

Much of this information has been resourced from the

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