Risk & Business Magazine Spectrum Insurance Magazine Fall 2018 | Page 8

EQUIPMENT BREAKDOWN INSURANCE
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 Spectrum Insurance Group 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.
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 Internet
Servive Provider’s servers or other
equipment. It will not, however,
cover nonphysical damage such
as that caused by computer
viruses.
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 loss when having to sell a
damaged product for less than
retail price.
Demolition
Extra Expense—covers
additional expenses used to
keep the business going after a
covered loss, such as equipment
rental fees.
Perishable Goods —covers food
spoilage, manufactured goods,
or other perishable items after a
covered incident.
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.
Waiver 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 Spectrum Insurance Group 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. spectruminsurancegroup.com
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