Equipment Breakdown

Equipment is exposed to unique risks that other property is not, such as electrical short circuits and mechanical forces. Unbudgeted losses from a breakdown can be extremely costly, and in many cases, greatly impact the bottom line. Therefore, equipment breakdown coverage is needed to pay for the financial loss incurred as a consequence of a breakdown.

Equipment breakdown coverage fills those gaps created by standard insurance policies, which specifically exclude losses for equipment damage caused by:

 Implementation of Financial Management Information and Accounting Systems
 Mechanical breakdown
 Electrical arcing
 Artificially generated electrical currents
 Centrifugal force
 Boiler overheating, cracking, bulging, sagging
 Bulging, cracking or collapse of pressure vessels, such as water heaters, compressed air tanks, steam cookers and kettles

Equipment breakdown insurance has frequently been referred to as ?boiler and machinery? insurance. But, the reality is that this specialty insurance covers far more than boilers and machinery. Equipment breakdown coverage fills those gaps created by standard insurance policies, providing coverage for these kinds of equipment covers:

 Boilers, pressure vessels, water heaters
 Electrical distribution systems
 Heating and cooling systems
 Refrigeration (including lost refrigerant)
 Office equipment
 Communication systems, including telephones and voice-mail systems
 Security and fire detection systems
 Ovens, stoves, furnaces
 Elevators, escalators, cranes, hoists, lifts
 Cash registers and inventory control systems
 Diagnostic Equipment
 Production machinery
 And more

Click here for a more detailed document on ?Understanding your Equipment Breakdown Coverage?