ISO EQUIPMENT BREAKDOWN PROTECTION COVERAGE FORM AVAILABLE ENDORSEMENTS AND THEIR USES

(June 2020)

INTRODUCTION

The following listing identifies endorsements available to modify the Insurance Services Office (ISO) Equipment Breakdown Protection Coverage Form. It is arranged by form number and title, and it includes a brief explanation of the use of each form. This section does not include any state-specific endorsements, changes, or amendments.

New or changed endorsements with the 01 13 edition are in bold print.

FORM NUMBERING

The ten-digit numbering sequence of ISO forms and endorsements has a very specific meaning.

The first two entries are alphabetical characters that indicate the line of insurance involved. For example, EB denotes Equipment Breakdown.
The next two digits designate the specific insurance category. The numerals "15" apply to Equipment Breakdown Protection Coverage forms and endorsements.
The next two digits are the form or endorsement number within the insurance category.
The last four digits are the edition date of the form or endorsement expressed in month and year format. These digits are not used in this analysis.

Note: Endorsements previously identified as "BM" are now identified as "EB." The Equipment Breakdown Protection Coverage Form Archive lists and describes endorsements used with previous editions of this coverage form.

ENDORSEMENTS

EB 15 39–Refrigeration Interruption Coverage

This endorsement covers the named insured's refrigerated property that spoils because lack of or excess refrigeration due to a breakdown of covered equipment that occurs at either owned or non-owned locations. It covers the expenses incurred that reduce the loss. It is subject to the insurance company receiving an annual report of values and includes a coinsurance condition that is triggered if the annual report of values is late or is not submitted at all. The coverage contains its own limit and deductible.

EB 99 51–Amendment of Declarations

This endorsement is used to change the original entries on the declarations to reflect changes in limits, coverages, deductibles, and conditions.

EB 99 52–Turbine Units Explosion Coverage

Turbine units only receive the restricted coverage described in this endorsement. The premises where located and the specific unit must be scheduled. The coverage is different, but if accepted, the premium savings is substantial.

EB 99 55–Pressure or Vacuum Equipment

This endorsement restricts coverage. It replaces the definition of covered equipment to include only equipment intended to operate under internal pressure or vacuum. This equipment must be subject to mandatory inspection by state or municipal entities that authorized insurance company inspection personnel can do.

Using this endorsement results in a lower premium because the breakdown coverage provided is so limited.

EB 99 56–Limited Coverage for Specified Equipment

This restrictive endorsement limits coverage for the scheduled described covered equipment while maintaining the broader coverage for other equipment and premises. A limit of loss, a complete description of the equipment and premises, and the number of days for business income coverage must be entered on the endorsement schedule.

This endorsement changes coverage from a blanket to a scheduled basis for the premises listed.

EB 99 57–Production Machinery Exclusion

This endorsement restricts coverage. It amends the definition of covered equipment to exclude production or process machinery and related equipment.

EB 99 58–Spare Equipment and Parts

This endorsement allows the named insured to separately cover spare parts and equipment that are not functioning or that are not available for use. Such property is subject to the details entered on the endorsement schedule. This lets the named insured fully cover equipment and parts that are important to its operation while still providing some limited coverage for spare equipment and parts.

The endorsement must be read carefully to be certain that all scheduling matches the endorsement’s wording.

EB 99 59–Actual Cash Value

This endorsement changes the Property Damage Valuation from replacement cost to actual cash value. It may be limited to only damage at scheduled premises and/or caused by scheduled equipment.

Because this is a restricting endorsement, any scheduling must be very specific in order to eliminate confusion.

EB 99 60–Suspension/Reinstatement of Coverage

This endorsement immediately suspends coverage on any equipment the insurance company considers unsafe. The suspended equipment is identified and the date on which the suspension began. The suspension can only be lifted by the attachment of this endorsement to the policy. The suspension is immediate, but equipment is not reinstated until the endorsement that reinstates coverage is issued.

EB 99 61–Valuation of Specified Property

This endorsement is used to change the valuation for the covered property listed on the endorsement schedule. The new valuation is its fair market value, reduced by any salvage obtained and labor, materials, or expenses that are not incurred in its sale.

EB 99 62–Covered Equipment Deductible Waiver

If covered equipment sustains a second loss within two years of the first loss, the deductible for the second loss is waived. The waiver is for the equipment only. The waiver does not apply to any related property damage. In addition, if the deductible for the first loss is less than the deductible for the second loss, only the amount of the first deductible is waived.

EB 99 63–Off-Premises Equipment Coverage

This endorsement extends coverage to apply to damage to covered property caused by equipment that is taken off premises. As a condition of coverage, the equipment must be at a fixed location, be ready for use, and under the named insured’s control.

EB 99 64–Optional Valuation Coverage

This endorsement replaces paragraph (1) of the Valuation condition but only for equipment that is less than five years old. It allows the named insured to replace equipment that is considered a total loss with equipment that is equivalent in purpose instead of the same kind of equipment. The insurance company pays only actual cash value if the equipment is not replaced. This allows the named insured to carry a lower amount of coverage on equipment that it will not replace with identical equipment. This might be particularly useful with rapidly-changing-technology-type-equipment such as computers and communication equipment.

EB 99 65–Product Withdrawal Coverage

This endorsement covers expenses related to the withdrawal of defective products.

Related Article: EB 99 65–Product Withdrawal Coverage

EB 99 66–Solidification Coverage

This endorsement covers the damage that occurs because items solidify following a covered breakdown. It does not cover the loss of value to the solid item, just the damage caused when it occurs.

Examples are molten metal that cools and adheres to processing equipment or concrete that hardens and adheres to a mixer when agitation stops.

EB 99 67–System Installation Coverage

Installing some equipment can take many months. This endorsement covers damage to equipment while it is being installed and during testing. It also covers loss of income because of such damage. Optional coverages are available, based on entries on the endorsement schedule. Once the installation is complete, this equipment’s value should be added to the policy’s per breakdown coverage.