The following is a guest post about equipment breakdown coverage. If interested in submitting a guest post, please read my guest post policy and then contact me.
Equipment breakdown coverage, or as sometimes referred to as boiler and machinery, system breakdown, or machinery breakdown, is an insurance policy which covers business property, potential losses, and/or associated legal fees, which may result form the malfunction of boilers, machinery, or equipment breakdown, which may result from external or internal causes. Most property or casualty insurance policy will cover some type of claims for equipment damages if the damages were the result of external causes or “acts of god or nature” such as, fire, floods lightning, etc., but will not provide coverage’s in the case of equipment damage or breakdown that was the result of internal causes such, mechanical failure, faulty electrical, electrical shorting, etc. Equipment breakdown insurance will also cover the cost of inspection and maintenance of equipment, machinery, or boilers. This type of insurance coverage extends to protect, major machinery systems which may be common to most commercial buildings, such as heating, ventilation and air conditioning systems.
In today’s day and age high tech companies are reliant on their internal technologies, such as electronics and computer equipment. This equipment is often fragile and prone to damages that can cripple a company’s daily operations if not in working order. This new computerized equipment can be more sensitive and more expensive then traditional heavy mechanical machinery. These types of businesses also rely on this equipment for daily operations and it is essential that these computer systems be repaired immediately as to avoid loss of revenue. Failure to access databases and internet systems may stop daily operations of business; these types of equipment breakdowns can be very costly. It is important to understand that this equipment breakdown insurance will cover and protect this type of equipment from hardware malfunction not software malfunction. That is there must be evidence of physical damage. This damage may have been result of power-surges and electrical problems, but, equipment breakdown insurance will not cover problem which may have resulted from computer viruses or internal crashing. Equipment breakdown insurance may cover replacement and repair, and in some cases loss of revenue due to interruption.
For traditional mechanical equipment, equipment breakdown insurance will cover damages and loss of revenue due to mechanical breakdowns, electrical arching, artificially generated electrical currents, centrifugal force, bulging, cracking or collapse of pressure vessels. Many types of internal building equipment may also be covered; this may include but is not limited to, air conditioning, electrical equipment, computer and telecommunications, business equipment, production equipment, security systems, “point of sale” systems, ventilation systems, generators, elevators, water heaters, motors, pumps and engines. Cost of Maintenance and inspection on these types of equipments will also be covered in most equipment breakdown insurance policies. This can include loss prevention in the cases of improvements, which may help a company grow and progress. Equipment breakdown insurance can be expanded to include, mold damage, anchor locations, civil authority, environmental safety and efficiency, green equipment, brand and labels on salvages, and off-premises property damages.