EQUIPMENT INSURANCE
• Without A / C , many businesses will need to relocate or rent temporary equipment while the unit is out of order .
• Businesses that rely on refrigeration to maintain their products ( hotels , restaurants , schools , nursing homes , hospitals , etc .) run the risk of spoilage in the event of a breakdown . They may be forced to hire a catering company or rent a refrigeration truck .
• In one case , a hotel air conditioning compressor motor broke down during a July convention , causing $ 73,366 in total losses .
Boilers and Pressure Vessels
• Cracking , collapsing , bulging or explosion can occur in boilers and pressure vessels ( heating units , hot water units , cookers , sterilizers , cleaning equipment , etc .).
• With no heat or hot water at a facility , businesses are forced to rent costly temporary units until the facility can be repaired .
• For example , one store lost heat during the holiday shopping season when the boiler broke down and incurred $ 54,467 in losses .
Computers and Communication Equipment
• Outages can affect computers , multiline phone systems , TV satellite systems , point-of-sale systems , security systems and fire alarm systems .
• An outage at your Internet service provider ( ISP ) can affect the functionality of your website and prevent your access to crucial information or web services .
• For example , a power surge damaged a service station / convenience store ’ s electronic cash register , auto diagnostic system , phone and paging equipment , and security system for a total loss of $ 56,888 .
Mechanical Systems
• Can break down as a result of vibration , metal fatigue , seizing , misalignment or human error . This includes machines such as water pumps , ventilation fans , elevator and escalating machines , motors or engines .
• Equipment is often critical to most buildings ’ functions .
• An example of this type of breakdown would be when a hydraulic lift in an auto repair shop needs to be replaced after welds gave way , costing around $ 9,000 .
WHAT DOES EQUIPMENT BREAKDOWN INSURANCE COVER ?
It is important to understand the coverage you receive with your equipment breakdown policy . If you hold an older policy , you may want to review it with JGS Insurance to be sure it covers any new , high-tech equipment you may have purchased . Typically , the following is covered under an equipment breakdown policy :
• Property Damage - Cost to repair or replace damaged equipment due to an accident .
• Off-Premises Property Damage - Covers portable equipment damaged away from the covered location .
• Business Income - Covers the loss of income as a result of a covered accident until equipment is repaired or replaced . Also allows for additional time after repair or replacement to ensure that the business is operating at full capacity .
• Contingent Business Income - Covers income loss after an equipment breakdown at an essential customer or supplier location .
• Extra Expense - Covers additional expenses used to keep the business going after a covered loss , such as equipment rental fees .
• Service Interruption - Covers business income and extra expenses after a breakdown at a supplier with whom the insured has a contract . If no contract exists , the equipment must be located within one mile of the insured ’ s location . Services such as waste disposal , air conditioning , refrigeration , heating , natural gas , compressed air , water , steam , electrical power and communications are often included . Considering the reliance many businesses have on Internet access , it is important to note that this may also cover your loss of business due to a mechanical or electrical breakdown in your ISP ’ s servers or other equipment . It will not , however , cover nonphysical damage such as that caused by computer viruses .
• Perishable Goods - Covers food spoilage , manufactured goods or other perishable items after a covered incident .
• Demolition
• Ordinance or Law - Covers costs associated with complying with building codes and laws ( other than demolition ).
• Expediting Expense – Covers the temporary or permanent repairs necessary for basic business activity .
• Hazardous Substances – Pays to clean , repair or replace areas that are contaminated by hazardous substances released in a covered loss .
• Data Restoration - Pays for the restoration of lost or damaged data .
• Newly Acquired Locations - Pays for damage to newly acquired locations .
• Errors and Omissions - Covers locations that are outlined in the policy .
• Brands and Labels - Reimburses for the loss when having to sell a damaged product for less than retail price .
• Waive of In-Use Restriction - Pays for damaged equipment that was not in operation at the time of a covered accident .
• Computer Equipment and CFC Coverage
COUNT ON THE COMMERCIAL PROPERTY EXPERTS .
Consult JGS Insurance today to learn more about equipment breakdown insurance to combat costly , and often unforeseen , problems at your place of business . We have the commercial property expertise to help you mitigate your risks and protect your bottom line . +
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