Usborne & Hibbert Mutual Fire Insurance Company

Additional Coverage

Equipment Breakdown Coverage

Insurance Information

Why Equipment Breakdown Coverage?

Property policies specifically exclude some of the most common equipment breakdowns, including electrical arcing, mechanical breakdown, rupture or cracking. These kinds of gaps can cause costly property damage and loss of revenue or extra expense.

What’s Covered?

Nearly everything that is mechanical, electrical or under pressure can be insured for loss due to breakdown. The most common types of equipment would include heating boilers, air conditioning and refrigerating units, electrical panels, computers and communication systems.
  • Protecting the Equipment a Business Needs Most
  • Computer, Printers
  • Communication Systems
  • Photocopiers, Fax Machines
  • Diagnostic Equipment
  • Security Systems
  • Stoves, Ovens
  • Retail Scanning Equipment
Coverage is also included on equipment to provide human comfort or services in a building such as:
  • Boilers, Hot Water Tanks, Heat Exchangers
  • Air Conditioning & Refrigeration
  • Mechanical Pumps, Fans & Compressors
  • Electrical Motors, Transformers & Panels
Spoilage Coverage is also included. Loss of the insured’s perishable goods that spoil as a result of a breakdown is covered to the policy limit.

Additional Features

  • Business Interruption/Extra Expense if provided in property coverage
  • Bylaws
  • Professional/Auditors fees if provided in property coverage
  • Hazardous substances to a limit of $100,000
  • Data Coverage to a limit of $25,000
  • Expediting expenses
  • Broader definition of insured equipment
  • Broader definition of Breakdown
  • Low Deductible
  • Service Interruption (electricity, communication systems, heating and cooling)
Highlights only . Actual policy wordings govern. Coverage availability subject to underwriting eligibility

Typical Breakdown

BusinessWhat happenedLoss
Real Estate DeveloperAn electrical power surge of unknown origin caused extensive damage to telephone equipment.Property Damage: $42,290.10
Office BuildingThe failure of air conditioning centrifugal compressor resulted in bearing, shaft and impeller damage.Property Damage: $46,012.00
Graphics CompanyBurn out and short circuiting of CAD/CAM computer resulted in loss of production.Property Damage: $10,118.10
Resort HotelA low water condition resulted in overheating and cracking of a boiler.Property Damage: $8,400.00
Nursing HomeMetal fatigue resulted in the breakdown of the drum shaft on an Industrial Washing Maching/Extractor.Property Damage: $9,576.5
Condominium BuildingHigh-voltage underground cables shorted to ground, causing damage to the transformer and resulted in lack of power to the buildingProperty Damage: $59,223.00
Business Interruption: $6,776.00
Plaza RestaurantThree transformers, property of the plaza, burned out. The restaurant (a tenant) suffered a Service Interruption loss as well as food spoilageSpoilage: $3,971.12
Business Interruption: $7,305.13
Commercial Packages