Boiler & Machinery

Question 1

Breakdown of Covered Equipment

Answer 1

Direct physical damage to covered equipment which necessities repair or replacement and results from accidental pressure failure of vacuum equipment, mechanical failure, or electrical failure

Question 2

Insured Risk

Answer 2

Object

Question 3

What is an Object

Answer 3

Specified piece of equipment covered by the equipment breakdown protection coverage form

Question 4

Property Damage coverage

Answer 4

pays for direct damage to covered property described premises

Question 5

Expediting Expenses coverage

Answer 5

Pays for extra costs incurred by the insured that are necessary to make temporary repairs and expedite permanent repairs or replacement

Question 6

Spoilage Coverage :

3 ITEMS

Answer 6

Raw Materials

Property in process

Stored finished products

Question 7

Business Income / Extra Expense

TWO OPTIONS

Answer 7

Business income AND Extra Expense

ONLY Extra expense : Will NOT cover business income

Question 8

Period of Restoration

Answer 8

Begins either at the time of the breakdown or 24 hrs before the insured notified the breakdown

Question 9

Spoilage coverage CONDITIONS

Answer 9

• Spoilage must result from lack of power, light, heat, steam, refrigeration

Insured must own spoiled property r be legally liable

Question 10

Utility Interruption

Only Available if policy includes at least one of three

Answer 10

• Business income and Extra Expense
• Extra expense only
• Spoilage damage

Question 11

Ordinance and Law

Answer 11

Pays for increased demolition and construction costs, snd loss to undamaged portion of building, as a result of enforcement ordinances or laws