Term
| Equipment Breakdown Protection Coverage |
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Definition
| Standard commercial property forms exclude or restrict loss/damage to machinery caused by mechanical breakdown, power surge, explosion, etc. that can be covered by Equipment Breakdown coverage |
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Term
| Equipment Breakdown Protection Coverage Form |
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Definition
| Representative of many of the most common coverages and can be tailored to meet individual needs |
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Term
| Equipment Breakdown Protection Coverage Form - Structure |
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Definition
| Policy declarations and common policy conditions are the same. Works by incorporating optional coverages into the form |
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Term
| Equipment Breakdown Protection Coverage Form - Coverage |
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Definition
| Provides protection related to direct and indirect damage to covered property caused by a covered cause of loss |
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Term
| Equipment Breakdown Protection Coverage Form - Covered Property (2) |
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Definition
1. Property the Named Insured owns
2. Property of others in the care of the Named Insured for which Named Insured is legally liable |
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Term
| Equipment Breakdown Protection Coverage Form - Covered Cause of Loss |
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Definition
| Breakdown to covered equipment |
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Term
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Definition
| The direct physical loss that causes damage to covered equipment, requiring it to be repaired. Excludes loss/damage resulting from improper care/maintenance (cleaning, modification, defects, damage to valves, seals, tubes, brushes, supporting structure/foundation, failure of safety devices, cracking of internal combustion engine) |
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Term
| Definition of Covered Equipment |
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Definition
| Includes production machinery, all computers without restriction, and all piping subject to certain restrictions. Excludes media, pressure/vacuum equipment not under internal pressure, insulating or refractory material, and motorized vehicles, aircraft, and construction equipment |
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Term
| Equipment Breakdown Protection Coverage Form - Causes of Loss |
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Definition
| The only covered cause of loss is a breakdown to covered equipment. Exclusions and limitations apply. |
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Term
| Equipment Breakdown Protection Coverage Form - Coverages Provided (10) |
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Definition
1. Property Damage
2. Expediting Expenses
3. Business Income and Extra Expense (or Extra Expense only)
4. Spoilage Damage
5. Utility Interruption
6. Newly Acquired Premises
7. Ordinance or Law Coverage
8. Errors and Omissions
9. Brands and Labels
10. Contingent Business Income and Extra Expense (or Extra Expense only) |
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Term
| Coverages Provided - Property Damage |
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Definition
| Coverage for direct damage to covered property at the described premises |
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Term
| Coverages Provided - Expediting Expenses |
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Definition
| Coverage for additional costs and expenses the Named Insured incurs as a result of making temporary repairs & to expedite permanent repairs |
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Term
| Coverages Provided - Business Income and Extra Expense (or Extra Expense only) |
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Definition
| Named Insured can purchase Business Income and Extra Expense (covers actual loss of business income during restoration, including extra expenses to operate during that time)or just Extra Expense (no coverage for Business Income). Standard limit is $25,000. |
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Term
| Coverages Provided - Spoilage Damage |
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Definition
| Coverage for loss or damage caused by spoilage to insured's raw materials, processing property, and finished goods. Property must be in storage or in the course of being manufactured; Property must be owned or insured must be legally liable; Spoilage must be a result of lack of or excess of power, light, refrigeration, heat, or steam |
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Term
| Coverages Provided - Utility Interruption |
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Definition
| Named Insured must purchase Business Income and Extra Expense, Extra Expense only, or Spoilage Damage to secure this coverage. Extends coverage to include loss as a result of utility services being interrupted. Interruption must be result of an equipment breakdown; Covered equipment must provide electric, water, gas, communication, heat, etc.; Interruption must last beyond the time as stated in Declarations |
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Term
| Coverages Provided - Newly Acquired Premises |
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Definition
| Extends automatic coverage for newly acquired premises for the length of time specified in Declarations |
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Term
| Coverages Provided - Ordinance or Law Coverage |
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Definition
| Similar to Commercial Property Policy, provides coverage for the loss in value to undamaged portion of building, costs to demolish and clear the site, and the increased cost of construction because of the enforcement of a law or ordinance |
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Term
| Coverages Provided - Brands and Labels |
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Definition
| Allows insured to stamp the word salvage on damaged, branded, or labeled merchandise that is covered property, or to remove the label and re-label as required by law |
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Term
| Coverages Provided - Contingent Business Income and Extra Expense or Extra Expense Only |
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Definition
| Same terms as Business Income and Extra Expense or Extra Expense only, except it applies only to loss or damage resulting from a breakdown to equipment that the Named Insured does not own or operate and the loss has a negative impact on the insured's business |
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Term
| Equipment Breakdown Protection Coverage Form - Selected Exclusions |
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Definition
Include Ordinance or Law; Earth Movement; Water; Nuclear; War; etc.
1. Pressure or Testing Exclusion
2. Neglect Exclusion |
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Term
| Equipment Breakdown Protection Coverage Form - Limits of Insurance (5) |
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Definition
1. Consequential Loss
2. Hazardous Substances
3. Ammonia Contamination
4. Water Damage
5. Data and Media |
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Term
| Equipment Breakdown Protection Coverage Form - Conditions |
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Definition
Similar to Commercial Property Policy; 2 most notable exceptions:
1. Suspension: If determined that equipment is in unsafe/dangerous condition, coverage may be suspended
2. Joint or Disputed Loss Agreement: Facilitates the payment of the claim if multiple insurance companies are involved to prevent Named Insured from any inconvenience in case of a dispute |
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