Equipment breakdown is not always included on your Commercial Property Insurance or Business owners policy but can usually be added by endorsement, or in certain circumstances it can be covered under a separate policy. If you have machinery or equipment that would cause substantial damage or loss to your business if they failed you may want to consider Equipment Breakdown coverage. Here are some of the coverage that may be available on a Equipment Breakdown policy.
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Property Damage – Listed or scheduled equipment that is damaged.
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Expediting Expenses – The cost incurred to speed up the process of replacing or repairing the damaged equipment.
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Business Income and Extra Expense – The lost income of the business or any extra expenses due to a equipment breakdown.
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Spoilage – A loss due to a breakdown that causes spoilage to a product due to a lack of heat, refrigeration, excess power, light or steam.
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Utility Interruption – Usually only covered in conjunction with Business Income or Spoilage, this coverage will pick up a loss due to a loss of utility service.
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Newly Acquired Premises – Covers newly acquired premises for the number or days stated in the policy usually 30 or 60 days.
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Ordinance or Law Coverage – This coverage will pay for any increase in cost necessary to bring the damaged property up to code at the time of the breakdown.
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Brands and labels – This coverage covers some of the expense to re-label its salvaged merchandize.
Any and all of these coverage’s may be included in an Equipment Breakdown policy. Please be sure to speak with one of our knowledgeable Insurance agents to discuss what coverage you would need to secure for your business.