During a heatwave, many systems are being worked to their limit. This heavy workload could cause a mechanical breakdown. Insurance for mechanical breakdowns/equipment breakdown can be purchased as a separate policy or as an endorsement to your commercial insurance policy,
Equipment Breakdown: A standard policy will cover the following types of equipment.
- Electrical systems-Including electric cables, panel boxes and transformers. The policy will pay for the direct physical loss and additional expenses if there is loss of rents if tenants leave because the premises is not habitable.
- Air conditioning and Refrigeration-Including compressors and loss of refrigerant. The policy will pay to replace a compressor in an A/C unit. This is the most common component to fail in air conditioning systems.
- Boilers and Pressure Vessels -includes production and heating boilers and storage tanks. Low water or contaminated water is a common culprit in losses to boilers and pressure vessels These items are used to heat water and without hot water many businesses are not able to operate.
- Computers and Communications-These items become more important as the Internet of Things monitors many of the systems listed above. If your computer and communication systems fails there can be a cascading failure to your other systems. The most common loss to this class of business is caused by power surges and brownouts. This fluctuation in voltage can damage circuit boards.
- Mechanical-Including elevators, compressors and generators. Common losses to this class of business are caused by low or contaminated oil, or metal fatigue. If your elevator is not operating you may suffer a large loss of income.
The classes of equipment listed are not all inclusive for most Mechanical Breakdown policies but they are the most important for owners of apartment buildings and investment real estate. Mechanical breakdown insurance does not cover wear. and tear or deterioration due to regular use. The loss needs to be sudden and accidental. Before purchasing or renewing your insurance policy contact your Trusted Choice Insurance Agent at Richey-Barrett Insurance.