Equipment Breakdown Insurance
Equipment breakdown insurance is increasingly replacing traditional boiler and machinery (B&M) 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 B&M policies, and they usually do not use the specialized terminology found in traditional B&M policies.
Nearly everything that is mechanical, electrical or under pressure can be insured for loss due to breakdown. The most common types of equipment would include heating boilers, air conditioning and refrigerating units, electrical panels, computers and telephone systems.
An equipment breakdown policy can also cover the following:
- Computers, Printers
- Telephone Systems
- Photocopiers, Fax Machines
- Diagnostic Equipment
- Security Systems
- Stoves, Ovens
- Retail Scanning Equipment
- Boilers, Hot Water Tanks, Heat Exchangers
- Air Conditioning and Refrigeration Equipment
- Mechanical Pumps, Fans and Compressors
- Electrical Motors, Transformers and Panels
- Spoilage Cover
In addition, the following additional coverage features apply:
- Business interruption/Extra expense if provided in property coverage section
- Bylaws
- Professional/Auditors fees if provided in property coverage section
- Hazardous Substances
- Expediting Expenses
- Broad Definition of Insured Equipment
- Broad Definition of Accident/Breakdown
- Service Interruption (electricity, telephone, heating and cooling)