ISO EQUIPMENT BREAKDOWN PROTECTION COVERAGE FORM ELIGIBILITY

(June 2020)

INTRODUCTION

The Insurance Services Office (ISO) Equipment Breakdown Protection Coverage Form does not have any limitations on the specific types or categories of businesses or risks that are eligible for coverage. It is available for any entity that has eligible equipment and needs the coverage it provides. It can be written either as a stand-alone policy or as a coverage part of a commercial package policy.

COVERED EQUIPMENT

The ISO Equipment Breakdown Protection Coverage Form insures losses that result from the named insured’s owned equipment breaking down. It also covers equipment in the named insured’s care, custody, or control for which it is legally liable. Coverage applies whether the equipment is already being used or is connected and ready to use. Covered equipment consists of the following:

• Equipment designed and intended to operate under internal pressure or in a vacuum. Pressure does not include the weight of contents.
• Mechanical or electrical equipment used to generate, transmit, or use energy
• Communication equipment
• Computer equipment

• The kind of equipment listed above that a private or public authority owns used exclusively to supply utility services to the named insured’s premises

The following are some examples of items that are considered covered equipment:

• Refrigeration equipment
• Diagnostic equipment (but only when noted on the declarations)
• Steam boilers
• Electric steam generators
• Steam piping
• Steam turbines
• Steam engines
• Gas turbines
• Moving or rotating machinery
• Spare equipment and parts

The following property is not eligible for coverage:

• Obsolete equipment
• Equipment that is no longer useful to the insured
• Equipment available for sale that the insured manufactures

Related Article: EB 00 20–Equipment Breakdown Protection Coverage Form Analysis

COMMERCIAL PACKAGE POLICY RATING PLAN LIMITATIONS

There are no limitations as to the types of risks that this coverage form can insure, either as a stand-alone policy or as part of a Commercial Package Policy. However, there are limitations when applying the commercial package policy premium credit or discount. The ISO Commercial Lines Manual, Division Two, Equipment Breakdown Rules provide additional information on this subject.