Equipment Breakdown

So Why Add Equipment Breakdown Coverage? 

Many businesses tend to overlook catastrophes that they are not financially prepared for.  Insured’s need to know that without this coverage they can be victims of non-covered comprehensive breakdowns. Equipment breakdown coverage will cover cost of repair or replacement of equipment that stops working suddenly and accidentally and will also cover loss of income due to the breakdown.

Equipment Breakdown is a fraction of the cost of a property insurance program and is one of the most important coverages business owners should purchase.

“Property” policies exclude coverage for Property Damage and Business Interruption for Mechanical Breakdown.

The world is very different today:

  • Elevators Talk
  • Machines Think
  • Building Turn Themselves on and Off
  • Computers Control Equipment
  • Equipment is Interconnected and Interdependent

Covered Equipment

  • All types of computers
  • Phone Systems
  • Retail Scanners
  • Computer Controlled Equipment
  • Hand Held Order Machines
  • Automated Manufacturing Equipment
  • Boilers & Pressure Vessels
  • Diagnostic Equipment
  • Electronic Equipment
  • Air conditional and refrigeration equipment
  • Many other types of high tech equipment

Comprehensive Breakdown Coverages

  • Property Damage ~ should a breakdown cause damage to your covered property
  • Business Interruption ~ should a breakdown cause a decrease to your net income
  • Extra Expense ~ should you incur additional cost to operate your business following a breakdown
  • Spoilage ~ should a breakdown damage raw materials, property in process or finished products
  • Utility Interruption ~ should you experience a loss caused by a breakdown at a utility
  • Brands & Labels ~ should merchandise be damaged
  • Contingent Time Element ~ to protect against loss of sale caused by other non-owned businesses
  • Data/Media ~ should either be lost or corrupted as a direct loss of a breakdown
  • Errors in Description ~ should an unintentional error occur which interferes with the payment of a loss
  • Expediting ~ to expedite the permanent repairs or replacement of your damage property
  • Newly Acquired ~ to automatically provide coverage for new locations until they are reported
  • Ordinance or Law ~ to provide protection against increased costs due to local ordinances and laws
  • Ammonia Contamination ~ should covered property be contaminated by ammonia
  • Hazardous Substance ~ should covered property be contaminated by hazardous substances
  • Water Damage ~ should covered property be damage by water
  • Next Generation Cover ~ replaces unrepairable equipment with state-of-the-art technology at up to 125 percent of replacement value
  • Selling Price Valuation ~ for all property held by an insured for sale