We cover all equipment that plugs into an electrical outlet including the outlet itself! Property insurance covers the equipment for the standard perils such as fire, but property insurance does not cover losses from mechanical and electrical breakdown. For example, if a computer system fails, does an insured know the cost to repair or replace it? And when the power is down there may be no lights, no hot water, no heating/air conditioning and most important, unhappy insureds and their clients!
This new coverage gives mechanical, electrical & pressure systems breakdown coverage resulting from the following circumstances: Power Surges, Mechanical Breakdown, Short Circuits, Motor Burnout, Boiler Cracking / Explosion, Electrical Arcing, Operator Error, Foreign Objects, Lubrication Failure, Improper Start-up, Vibration and Overload Conditions
Coverage Highlights
• Coverage is provided by a simple endorsement to the Farm Property Form.
• Equipment is covered on a blanket basis.
• The Farm Property policy limits and deductible apply to this coverage.
• There’s only one policy and insurer. No disputes between companies on a loss.
• The cost of this coverage is very inexpensive.
• Coverage not available in all states. Call for details.
This coverage is in addition to an insured’s equipment maintenance contract. Maintenance contracts usually cover routine care such as cleaning or adjustment. However most contracts do not pay for damage due to operator error which accounts for over 35% of all equipment breakdowns. And, maintenance contracts do not pay for loss of income or spoilage of inventory due to a breakdown. Warranties do not pay for loss of income, and many warranties do not cover power surges or operator error. With Systems Breakdown Insurance along with Business Income Insurance, coverage is included for all these types of losses.
Jurisdictional inspections are included. If there are boilers or other equipment that by law require inspections, the inspection service is included with this insurance, free of charge.
Coverage will automatically be added to all Farm Property policies that qualify, so there’s no need to do anything. We’ve taken care of all the work for you. Premiums are included in the Farm Property premium, so this approach is totally seamless and virtually invisible to most insureds. Should you have any questions, contact your Agriculture underwriter.
Click here to download a copy of the Mechanical, Electrical or Press Systems Breakdown Extension Endorsement (MFP 037 Rev. 05/06)
Click here for the Texas version.