Equipment Breakdown (Boiler & Machinery)
Most property insurance plans have a serious gap – leaving Insureds unprotected from some of the most costly and common losses a business can face – and leaving an insurance brokerage facing a potential E&O claim.
New product to include equipment presently excluded in property coverage.
Now Insureds can have coverage for:
- Fax Machines, Computers/Printers, Software, Calculators, Cash registers, Telephone systems, VCRs, Electrical systems, Medical diagnostic equipment, Microwaves, Appliances, Tape recorders, and much more .
…”Should the cause of loss be just plain “breakdown”…
Most property policies specifically exclude these losses from coverage. Broad Coverage is available on all this equipment plus the Insureds heating, cooling and electrical systems. Coverage reimburses the Insured for repair or replacement of failed or damaged systems. It also compensates for lost revenue or spoilage caused by equipment breakdowns.
One of the best features is low cost, especially compared to what an equipment breakdown could cost.
Turn Client Concerns To Your Advantage – And Give Boiler Sales A Lift.
Concern: “But I don’t have a boiler. Why do I need coverage?”
Response: “Boiler and Machinery Coverage is for much more than boilers! It covers nearly everything mechanical and electrical including;
- communication systems, telephone and fax equipment
- computer systems
- duplicating equipment
- mail systems
- word processing systems
And these are the types of systems that break down most often. Coverage is provided for direct loss, extra expense, and spoilage as a result of direct damage.”
Concern: “My property already covers ‘all risks’ – so why do I need your new coverage?”
Response: “Typical property policies, even all-risk policies, specifically exclude some of the most common equipment breakdowns, including;
- electrical arcing
- mechanical breakdown
- rupture and cracking.
These kinds of gaps can cause costly property damage, business interruption, and spoilage losses.”
Concern: “My warranty and / or maintenance contract gives me the coverage I need.”
Response: “More than 35% of all equipment accidents result from operator error. Most warranties and contracts exclude those types of accidents. Warranties and contracts also don’t normally cover business interruption, extra expenses, or spoilage.”
Concern: “I can’t see where it’s worth the money. What’s the real benefit to my company?”
Response: “It provides the absolute maximum coverage for your premium dollar. For just a few dollars a week, you can protect your company from the types of losses that can really add up. Losses that could even put you out of business.”
Concern: “This coverage sounds good – buy why didn’t you tell me about it before?”
Response: “Quite simply, it’s a brand new type of insurance coverage. Protection this broad – and this affordable – was never available before.”
New types of policies are now available for Boiler and Machinery exposures.
This policy will provide virtually unlimited coverage for your business equipment in the event of a breakdown** to that equipment. This extends to all communications equipment, computers, media, duplicating equipment, fax machines and medical equipment. This extension of our mechanical and electrical coverage includes all office equipment using electricity. Computer Data Coverage is also available.
This policy provides coverage for three (3) major exclusions found in standard property forms.
- Electrical arcing (including any electrical breakdown to all transformers, electrical panels, circuit breakers, pumps, motors, refrigerating/air conditioning systems, and all miscellaneous switchgear wiring)
- Mechanical breakdown (including an accidental breakdown to all refrigeration and air conditioning systems, compressors, pumps, motors, fans, gear sets, generators, air tanks, or pressure vessels).
- The explosion, rupture, or bursting of boilers, pressure vessels or piping, either containing steam or under a pressure exceeding 15 pounds per square inch.
**Breakdown means a sudden and accidental failure of insured equipment causing physical damage which requires repair or replacement of the equipment or a part of the equipment.
South Western will include Boiler & Machinery Coverage as part of any composite mercantile package or program account written for any Insured. Coverage may also be written on a stand alone basis.