Downtown Portland, Oreogn

Equipment Breakdown Insurance

Equipment Breakdown provides coverage for electrical mishap perils for property that’s insured. Covered equipment would include system’s equipment that’s relative to the buildings operations such as air conditioning units, electrical power panels, pressure vessels and boilers (includes kitchen equipment). Included is expediting expenses, which are reasonable extra costs to make temporary repairs to expedite permanent repairs.

Do you need Equipment Breakdown Insurance?

Within each business there’s critical equipment that’s used to drive the performance of your businesses. The following are five major exposure areas of equipment breakdown that your business might be exposed to.

Many electronic tools require cooling to operate. Loss of air conditioning in an office environment can mean the workplace becomes unbearable to work in. Since buildings are now designed for mechanical cooling opening windows are no longer a viable option.

Record storage areas may require environmental controls to maintain the required humidity and temperature for stored electronic media or paper records.

Mechanical refrigeration systems rely on compressors, chillers, cooling towers, condensers, air handlers and controls to keep the temperature under control. Losses to this equipment can create long interruptions, require cranes to remove equipment and require extraordinary steps to protect processes.

The most common exposure to loss involves an electrical disturbance. This may be a short circuit, lightning or an artificially induced current created by a component failure. As the electrical system is interconnected, a failure in one component or device can cause damage to other components connected to that circuit. If the damage is contained within the electrical devices, it may not be covered by a traditional business property policy.

Electrical losses can cause damage that requires replacement of transformers, wiring, controls and other components that are difficult to access or would require significant labor to remove and replace.

Boilers may provide hot water or steam for building heating or process heating. The critical use of the boiler is directly related to the end use of the steam or hot water.
Mechanical equipment includes pumps, ventilation fans, motors, engines and other equipment needed to process, power, condition or move materials, people and products. Many of these items are computer controlled or have sensitive electronic controls that are subject to electrical surges, disturbances and failure.
No business can function without its computer systems and communications equipment. Losses that can affect this equipment can be related to electrical disturbance, power surges or a mechanical failure.

Reach out to me if you’re considering Equipment Breakdown Insurance. I will discuss with you how it works and assess if it fits into your risk management needs. If you determine this coverage is needed I will then provide you with comparative Equipment Breakdown Insurance quotes from multiple insurance carriers so you can get the best possible rate.

As an insurance broker I help businesses throughout Oregon and the Pacific Northwest manage risk.