Oklahoma Equipment Breakdown Insurance

 

What is Equipment Breakdown Coverage?

Equipment Breakdown (EB) protects businesses from losses caused by mechanical and electrical breakdowns.

Businesses are more than ever running off of expensive machinery and equipment that is vital to the organization’s operations. However, the problem with the technological utilities used by businesses is that they are prone to mechanical and/or electrical breakdowns. Not only are these typically expensive, complex ordeals, they also hold up the business’ operational output, and the business is at an utter standstill. The loss of income that a business would incur, is too costly to ignore.

What businesses Need Oklahoma Equipment Breakdown Insurance Coverage?

Coverage for loss due to mechanical or electrical breakdown of nearly any type of equipment including photocopiers and computers. Coverage applies to the cost to repair or replace the equipment and any other property damaged by the equipment breakdown. Resulting business income and extra expense loss if often covered as well.

How Much Does EB cost?

Coverage is typically very inexpensive while the damage from the breakdown of such integral machinery can be ever so costly for businesses. Contact us to schedule a free consultation.

How Much Coverage Does EB Provide?

The limits on the Declarations are for loss or damage from a single breakdown event but generally are equal to your total property insurance limit. With regard to the additional coverages, a $25,000 limit is automatically included unless a higher limit is entered on the Declarations

What EB Coverages are available?

Sample of available coverages:

  • Property Damage

  • Expediting Expense

  • Business Income and Extra Expense or Extra Expense Only

  • Spoilage Damage

  • Utility Interruption

  • Newly Acquired Premises

  • Ordinance or Law

  • Professional Liability Insurance

  • Brands and Labels

  • Contingent Business Income and Extra Expense or Extra Expense Only

What Does Equipment Breakdown Insurance NOT Cover?

In order for EB coverage to take place it must be caused by the breakdown of one of the four types of equipment.

  • Pressure vessels and vacuum equipment: Includes any equipment built to operate under internal pressure or vacuum. Examples are boilers, water heaters, vacuum pumps, autoclaves, steam cookers, and pressurized storage tanks.

  • Electrical or mechanical equipment: A broad category that includes things like transformers, circuit breakers, furnaces, air conditioners, generators, compressors, refrigerators, ovens, production machinery, and elevators.

  • Communication and computer equipment: Examples are telephone systems, security systems, fire alarm systems, computers, and printers.

  • Utility-owned equipment: Means equipment that fits one of the above categories and is owned by a utility. The equipment must be located at the described premises and used solely to supply utility services to the insured's premises. An example is a utility-owned transformer located on your premises and used by the utility to deliver electricity to your business.

    Not all coverages listed are available to all clients and vary from carrier to carrier. Consult policy for actual coverage.