Equipment is exposed to unique risks that other property is not. Electrical short circuits, mechanical forces, overload, control failures are just a few of the causes of equipment breakdowns. Examining some examples of losses that occur offers insight into why equipment breakdown insurance is important coverage for today’s equipment-intensive businesses.

Office Building

Electrical arcing destroyed three main electrical panels and left an office building without power. Temporary measures were taken to restore power to tenants – particularly to an accounting firm that was in the height of tax season.
Total Loss: $1,597,389

Apartment Building

An apartment complex's aluminum electrical supply bus burned out, severely damaging electrical wires and cables. Angry residents had to be relocated to temporary housing.
Equipment Repair Cost: $118,681
Relocation Cost: $72,152
Total Loss: $190,833


Furniture Manufacturer

Sawdust in an electrical distribution panel severely damaged the interior of the panel. Overtime was required to make up lost production.
Repair Cost: $21,087
Extra expenses: $14,600
Total Loss: $35,687


A turbine generator supplying power to a hospital failed when blades broke and penetrated the engine.
Total Loss: $292,513



A bolt came loose and fell into a high-speed press, damaging the cylinder and gears.
Total Loss: $136,693


Machine Shop

A power surge from a utility line damaged two computer circuit boards, halting a metal shearing operation for nearly a week. Materials and workers were sent to another plant several hundred miles away to meet production requirements.
Repair Cost: $9,485
Extra Expense: $42,541
Total Loss: $52,026


Apartment Building

An air conditioning motor burned out in a high-rise, senior citizen's apartment building. Ninety-plus degree temperatures necessitated setting up four rented "spot coolers." Overtime was required to get the motor back on line.
Property Damage: $83,557
Extra Expense: $16,794
Total Loss: $100,351


Food Processor

An ammonia line ruptured when a compressor crankshaft and its connecting rod broke. Fresh scallops were contaminated with ammonia. Rental units were needed while the new compressor was installed.
Total Loss: $65,289


Medical Clinic

A control on a medical clinic's refrigerator suffered damage, causing the temperature to dive into single-digit temperatures. Drugs, which normally are stored between 36 to 43 degrees, had to be discarded.
Total Loss: $21,953


Sediment in a boiler caused a low-water condition that resulted in severe over-firing damage, shutting down the boiler – and a school. A rental unit was needed until the damaged boiler could be replaced.
Property Damage: $98,500
Extra Expense: $25,164
Total Loss: $123,664



A faulty circuit in a water pump caused a fire tube boiler to dry fire. The boiler was severely damaged.
Total Loss: $90,600



A section of a boiler and a steam pipe fitting cracked. Steam damaged the church organ, choir robes, and public address system.
Total Loss: $34,969

Municipal Building

A power surge damaged a generator, burned out police radio equipment, printed circuit boards for a fire alarm system, a small transformer, and small electric motors.
Total Loss: $90,160


Office Building

Electrical power supply voltage fluctuation caused two telephone system terminal boards to burn out.
Total Loss: $52,500


Service Station

A power surge damaged a service station's electronics, including the computerized diagnostic system, telephone, paging system and the security system.
Total Loss: $33,388

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