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Equipment Breakdown Policy (EB 00 20) Covered Equipment
- Covered equipment in the equipment breakdown form is defined as
- equipment built to operate under internal pressure or vacuum;
- electrical or mechanical equipment used to generate, transmit, or use energy;
- communication and computer equipment; and
- covered equipment owned by a utility and used to solely provide utility service to the insured's premises.
Equipment Breakdown Policy (EB 00 20) Covered Breakdowns
- defines breakdown to include pressure or vacuum equipment failure, mechanical failure—including rupture or bursting caused by centrifugal force, and electrical failure.
- The policy's breakdown definition is subject to some exclusions—events or conditions that do not qualify as a covered accident or breakdown.
Equipment Breakdown Policy (EB 00 20) Coverage Options
- specified on the declarations page;
- for any of the coverages to apply a dollar limit or the word "INCLUDED" must be shown.
Property Damage Coverage
covers direct damage to property owned by the insured and property in the insured's care for which the insured is legally liable.
Expediting Expenses Coverage
Expediting expenses include reasonable costs to make temporary repairs and to hasten permanent repairs or replacements.
Business Income & Extra Expenses Coverage
Business income coverage applies to the actual loss of business income. Extra expense coverage applies to the extra cost to continue operations. When this coverage is included, the insured is required to complete and submit an annual report of values form to the insurer.
Spoilage Damage Coverage
applies when the loss occurs as a result of a loss of (or excess of) power, heat, steam, light, or refrigeration.
Utility Interruption Coverage
extends other coverage to an interruption or spoilage caused by a breakdown to a public or private utility's property.
Newly Acquired Premises Coverage
applies automatically for the number of days shown in the declarations page.
Ordinance or Law Coverage
Ordinance or law coverage extends the equipment breakdown form to cover loss in value of the undamaged portion of the building or structure.
Brands & Label Coverage
covers the cost to stamp or alter labels on branded or labeled merchandise when the insurer takes the property for salvage. This applies in addition to the agreed or appraised value of the merchandise.
Contingent Business Income Coverage
Contingent business income and extra expense or extra expense only coverageextends the business income and extra expense (or extra expense only) coverage to apply to a breakdown to covered equipment at locations not owned or operated by the insured, when the breakdown results in lost sales or prevents the delivery of services or materials identified in the declarations page.
- In addition to the coverage limit shown in the declarations page, the equipment breakdown form also includes $25,000 sublimits for
- hazardous substance cleanup
- ammonia contamination
- water damage
- consequential loss
- data and media
Subject to the insured limits, the equipment breakdown form insures the replacement cost of covered property. Replacement cost coverage applies as long as the equipment is repaired or replaced within 24 months. Otherwise, payment is made on an actual cash value (ACV) basis.
- Actual Cash Value (EB 99 59) used when insuring older equipment.
- Business Income-Report of Values a fill-in-the-blanks worksheet that reports income and expenses.