Equipment Breakdown Coverage Now Available
ASI’s property underwriting team can now include equipment breakdown coverage on commercial multi-peril and monoline property policies. Standard commercial property policies typically do not cover losses sustained by an insured from equipment breakdown. In fact, property policies specifically exclude mechanical breakdown, electrical arcing or damage due to a surge of electrical power, explosion due to centrifugal force, explosion, cracking, or burning (overheating) of steam boilers or pipes. Uninsured gaps like these could mean big losses to an insured without the appropriate coverage.
Under ASI’s equipment breakdown coverage, electrical, mechanical, air conditioning, and production equipment as well as heating boilers and pressure vessels and key machinery and equipment are covered losses. In the event of an accident or breakdown to equipment, the following are covered:
- Electrical burnout of motors, electrical distribution equipment (circuit breaker box including facility electrical wiring), and emergency generators and transformers.
- Mechanical breakdown of compressors, pumps, fans, blowers, and other machinery.
- Cracking or collapse of air conditioning or refrigeration system vessels, coils, or piping.
- Explosion of steam boilers and steam piping.
- Burning (overheating) of boilers due to insufficient water.
- Cracking of sections in cast iron boilers.
- Bulging, cracking, or collapse of pressure vessels, such as water heaters, compressed air tanks, steam cookers and kettles, expansion tanks, and condensate return tanks.
- The extra cost of expediting repairs.
- Damage to other people's property in your care, custody, or control.
- Losses to property from the release of hazardous substances caused by an accident.
- Business Interruption protection, covering the expenses to get you back on track as soon as possible.
For further details on ASI's insurance solutions for commercial property, click here or contact an underwriter at 732-933-2960.
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