Chapter 10 - Equipment Breakdown Insurance

Equipment Breakdown Coverage Ten insuring agreements are available and coverage is provided if a limit is indicate for eachcoverage on Declarations1. Property damage2. Expediting expenses3. Business income and extra expense (or extra expense only)4. Spoilage damage5. Utility interruption6. Newly acquired premises7. Ordinance or law coverage8. Errors and Omissions9. Brands and labels10. Contingent business income (dependent properties)Covered Cause of Loss “Breakdown” to “covered equipment”o Once triggered, coverage from all insuring agreements applieso Protects equipment plus consequences including:• Business personal property of insured (or in care, custody or control of insured)• Business income loss "Breakdown"o Means the following direct physical loss that causes damage to "Covered Equipment“ andnecessitates its repair or replacement:1) Failure of pressure or vacuum equipment;2) Mechanical failure including rupture or bursting caused by centrifugal force; or3) Electrical failure including arcing;“Covered Equipment”1) Equipment built to operate under internal pressure or vacuum other than weight of contents;2) Electrical or mechanical equipment that is used in the generation, transmission or utilization ofenergy;3) Communication equipment and "Computer Equipment"; and4) Equipment in Paragraphs (1), (2) and (3) that is owned by a public or private utility and used solelyto supply utility services to your premises.…the "Covered Equipment" must be located at a premises described in the Declarations and beowned, leased or operated under your control (Except for (4))Equipment Breakdown Coverages: Property Damage and Expediting Expenses Again, coverage is broader than damage to “covered equipment” Includes all property of the insured that is damaged as a result of breakdown of covered equipmento Buildingo Business personal propertyo Personal property of others BPP would exclude coverage for most property losses anyway Expediting expenses are for costs incurred to temporarily repair or speed up permanent repairs fordamaged propertyo Not as broad as extra expense coverage