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Equipment Breakdown Insurance: The Electronic Age Strikes Again

Equipment Breakdown Insurance: 

The Electronic Age Strikes Again!

Businesses and institutions are relying more and more on costly equipment and newer technologies.  And all machinery and equipment, & technologies can fail due to power failures, surges, or breakdown.   

 You can purchase insurance to protect the equipment for breakdown caused by electrical malfunctions (power surges, short circuits, & electrical arcing), utility power surges, mechanical breakdown, motor burnout, and centrifugal force.

 All kinds of equipment can be damaged by direct hits (direct power surges wiping out a phone system, for instance), which may also cause lost income from the damage and lead to other expenses to restore the business:  Equipment such as . . .

  • Phone systems,
  • Business Equipment such as copiers, fax, scanners, & blueprint machines
  • Electronic cash registers, & scanners
  • Electrical, heating, refrigeration, and air conditioning systems
  • Elevator drives and equipment
  • Security and alarm systems,
  • Diagnostic, processing, & production equipment, and much more.

 When you open your doors at the beginning of each day, take a second look at your lighting, security, and specialized equipment as well as all of your computers.  Then, ask yourself:  Do I feel lucky today?  Ok – so dirty Harry isn’t standing next to you.  But, the potential of a significant loss is staring right back at you.

Ø  If your main circuit breaker panel fails, how much would it cost to replace and how much income or rent would you lose if you are waiting for another panel for the next 7-10 days?

Ø  How many customers would you lose to competitors if your phones or computers or air conditioners are fried by the utility company?

And, you can cover this exposure for very little additional premium.

 Please note the following claims examples:

Apartment Owners:  A contractor, sanding an apartment building’s wood floors, caused extensive arcing damage to the building’s electrical system when he connected his equipment to the building’s main electrical panel. The city declared the building to be uninhabitable and 28 families had to be relocated.  The total paid loss was $187,548

v PrinterAn electrical utility line disturbance damaged the printing computer system at a quick-print shop.  The total paid loss was $31,353.

Machine Shop:  A surface grinder was damaged when it flow off the magnetic chuck, striking & damaging the spindle. Replacement parts, not readily available, had to be manufactured. The paid loss was $24,145.

LandlordThe electrical switchgear in an apartment building shorted out because of deteriorated insulation.  The paid damage was $48,346.

Apartment Owners:   An apartment building’s air conditioning tubes broke due to corrosion. Refrigerant leaded into the system and damaged it further.  The paid loss was $31,108.

 I think you all get the picture.  This is a coverage whose time also has come.  If you are not sure of your coverage, call us!


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