BROCHURE: UNDERSTANDING THE ISO EQUIPMENT BREAKDOWN PROTECTION COVERAGE FORM

(June 2020)

The Insurance Services Office (ISO) Equipment Breakdown Protection Coverage Form completes the property coverage that you need. Commercial property coverage forms specifically exclude most types of equipment breakdowns while the Equipment Breakdown Protection Coverage Form Insures ONLY equipment breakdown. This coverage includes inspection service as a part of the basic coverage because you can eliminate most equipment breakdowns with proper maintenance. These inspections also satisfy any obligation you have to conduct required governmental or statutory inspections.

Consult the policy for definitions and limitations. The terms of this brochure do not represent contract terms. The policy is subject to company underwriting practices.

COVERED CAUSE OF LOSS

The Equipment Breakdown Protection Coverage Form covers loss or damage to your covered property that results when covered equipment breaks down.

COVERED EQUIPMENT

Four types of equipment you may own or operate can be covered:

• Pressure or Vacuum Equipment
• Mechanical and Electrical Equipment
• Production Machinery
• Diagnostic Equipment

This coverage also applies to your computer equipment, communications equipment, and equipment that generates, transmits, or uses energy.

COVERED PROPERTY

All property you own is covered for damage caused by covered equipment breaking down. Property you do not own but that is in your care, custody, or control and for which you are legally liable is also covered.

BREAKDOWN

Breakdown is direct physical loss or damage to your covered equipment caused by the following:

• Failure of pressure or vacuum equipment
• Mechanical failure, including rupture or bursting caused by centrifugal force
• Electrical failure and electrical arcing

COVERAGES PROVIDED

The ISO Equipment Breakdown Protection Coverage Form provides the following ten coverages:

• Property Damage
• Expediting Expenses
• Business Income and Extra Expense or Extra Expense Only
• Spoilage Damage
• Utility Interruption
• Newly Acquired Premises
• Ordinance or Law Coverage
• Errors and Omissions
• Brands and Labels
• Contingent Business Income and Extra Expense or Extra Expense Only

IMPORTANT CONDITION - SUSPENSION

Coverage can be suspended immediately if an insurance company representative notices a dangerous condition and notifies you of the suspension. If you continue to operate a suspended piece of equipment, coverage for any damage caused by that equipment breaking down is excluded.

ENDORSEMENTS

The ISO Equipment Breakdown Protection Coverage Form provides you very broad coverage. A limited number of endorsements are available for use with it that broaden, limit or exclude coverage.

Note to subscribers:

Related Article: ISO Equipment Breakdown Protection Coverage Form Endorsements Checklist

This is a list of endorsements available for use with this coverage form.

REPRINT PERMISSION

PF&M subscribers in any manual or electronic form are permitted to reprint any portion of this brochure for their commercial insurance customers. Other uses require permission from The Rough Notes Company, Inc.