Unit 14: Equipment Breakdown

Question 1

Equipment Breakdown Coverage

Answer 1

• mechanical breakdown
• electrical arcing
• artificially generated electrical currents
• centrifugal force
• boiler overheating, cracking, bulging, and sagging
• bulging, cracking, or collapse of pressure vessels, such as water heaters, compressed air tanks, steam cookers and kettles, expansion tanks, and condensate return tanks

Question 2

Covered Property pt 1

Answer 2

• boilers, pressure vessels, and water heaters
• electrical distribution systems
• heating and cooling systems
• refrigeration (including lost refrigerant
• production equipment
• office equipment
• computer technology

Question 3

Covered Property pt 2

Answer 3

• computer-controlled machines such as CNC machines and robotics
• communications systems, including phone and voicemail systems
• security and fire detection systems
• ovens, stoves, and furnaces
• elevators, escalators, cranes, hoists, and lifts
• cash registers and inventory control systems
• diagnostic equipment

Question 4

Coverages

Answer 4

• property damage
• expediting expenses
• business income and/or extra expense
• spoilage damage
• utility interruption
• brands and labels

Question 5

Equipment Breakdown Conditions

Answer 5

• normal property conditions - abandonment, appraisal, other insurance, etc.
• defense cost included
• suspension of coverage

Question 6

ACV instead of replacement

Answer 6

Obsolete or useless property not covered