Equipment Breakdown Protection Coverage will pay the cost to replace or repair equipment that has broken down due to unexpected damage caused by a covered peril. Typically, this will be arcing, rupturing, bursting, fracturing, or seizing, any of which will cause the equipment to stop working properly. This additional coverage in ICC’s policy will pay for damage caused by things that standard commercial property policies will not.
Businesses in the food and beverage industry rely on their equipment, like a refrigerator or oven, to operate efficiently. Many of the potential losses that are covered by equipment breakdown will negatively impact a business’s important daily operations, making this a valuable coverage for your clients. It is important to make sure they are aware of the advantages this coverage could offer them.
One aspect of running a successful business is keeping equipment in good working condition. Equipment Breakdown Protection Coverage can assist when sudden failures arise. Prompt reporting is integral to an Equipment Breakdown claim. Once troubleshooting has failed, and the insured has called their vendor, a claim should be reported to ICC. Prompt reporting is a requirement of the policy, and failure to do so could affect coverage.
Once ICC’s Claims Team has discussed the facts and circumstances surrounding the equipment failure, we will advise if an in-person inspection is needed. In the event a failure occurs on a weekend or holiday, and urgent repair is required to continue operating the business, it is important for the insured to photograph and/or videotape the equipment prior to repair and keep any damaged parts for ICC. The inspection of the equipment will tell us what the ultimate cause of the failure was, which will help us determine if the loss is covered.
Common covered causes of Equipment Breakdown are mechanical breakdown, power surge, and lightning strike. The policy does not provide coverage for malfunctions related to cleaning or calibration, leaking of gas or fluid, damage to vacuum tubes, gas tubes or brushes, or the functioning of safety or protective devices.
It is important to follow manufacturers’ recommended maintenance and utilize experienced vendors. Failure to maintain equipment, faulty work or repairs, and wear and tear are excluded under the terms of the policy.
For more information about how ICC’s Equipment Breakdown Protection Coverage can help your business, contact your ICC agent or locate an agent in your area with our Find an Agent search.
