The Simple Six
Helping you identify common equipment risks
Equipment is vital in today's world. Protecting it from costly breakdowns is paramount, with periodic engineering inspections of workplace machinery and equipment also forming a vital part of an employer's duty.
The Simple Six makes it easy for you to understand common equipment risks, and what our equipment breakdown product HSB Machinery and Technology Combined can cover. Explore each equipment category below for descriptions of equipment risks, common causes, and real-life losses. It's that Simple.
1. Lifting and handling
Many businesses have lifting and handling equipment exposures, with buildings containing a multitude of lifting equipment which might include passenger/goods lifts, escalators, fork-lift trucks, electric chain blocks, loading bay equipment, and patient hoists; to name a few. This equipment suffers breakdowns from oil contamination, misalignment, metal fatigue, and operator error, and often has sensitive technology that is fragile and prone to breakdown.
Much of this equipment is mission critical to business operations. Mechanical breakdown can result in lost income and business interruption; losses that HSB's equipment breakdown insurance can cover.
A fire broke out at an insured's timber yard, causing damage to their fork-lift truck.
£14,500
Claim paid
£9,000
Claim paid
A lift’s door at an art centre suddenly stopped working. Upon inspection, it was identified that its door operator motor had suffered an electrical breakdown.
£5,150
Claim paid
2. Mechanical equipment
Buildings are loaded with mechanical equipment, such as air conditioning (HVAC), refrigeration, pumps, motors, compressors and back-up generators. They can suffer breakdowns due to oil contamination, misalignment, metal fatigue, and operator error, and often has sensitive technology that is fragile and prone to breakdown. However, the property damage is just the beginning.
A refrigeration breakdown can result in business interruption and deterioration of stock that may far exceed the property loss. Lack of air conditioning can result in lost sales, forcing business owners to rent temporary equipment or relocate during repairs. Hotels, restaurants, schools, hospitals, nursing homes, dairy farmers, and the pharmaceuticals industry all have high refrigeration and deterioration of stock exposures. Equipment breakdown insurance helps pay for these expenses.
£18,300
Claim paid
Hot water and heating circulating pumps servicing an entire residential building went offline. Engineers determined a pump and motor had become seized due to a mechanical breakdown.
£13,640
Claim paid
£2,300
Claim paid
The expansion valve in a hospitality company's freezer room became stuck, causing the temperature to increase and stock to defrost. It was determined that small particles of debris had become loose, causing a blockage in the freezer's orifice tube, resulting in a mechanical failure.
The settled claim covered both the repair costs and loss of stock.
£2,600
Claim paid
3. Boilers and pressure vessels
Boilers and pressure vessels are used for heat, hot water, cooking, sterilisation and production. A boiler or pressure vessel breakdown can impact a business' ability to operate. And, extra expense beyond the physical damage is incurred when rental units to restore operations are needed. Equipment breakdown insurance covers these expenses.
Equipment repair costs also can be costly. Low water conditions are a frequent cause for breakdown, which can result in cracking, collapse, bulging, and in the worst case, explosion of the vessel. Pump or control failure, scale build-up or safety mechanism malfunction are also common causes for breakdown.
£4,000
Claim paid
A craft brewer’s 10,000-litre beer storage tank suddenly sprung a leak at pressure. After removing the beer, a visual inspection of the inside of the storage tank identified a premature failure to a weld of the storage vessel. The failure had also caused the beer to be contaminated with glycerine.
The vessel's manufacturer replaced the vessel free of charge due to the premature failure.
£17,200
Claim paid
£2,200
Claim paid
4. Production machinery
Today's production machinery - CNC manufacturing equipment, robotics, machining tools, food process equipment and many other types - are the heart of any manufacturer. When this machinery breaks down, it can bring a business and its income to a halt. Modern systems employ electronics and software to maximise production and energy efficiency. A power surge that damages the electronics or interrupts the information flow between machines can render the system as inoperable as a physical breakdown.
Modern systems with sensitive electronics require skilled specialists to repair. Replacements may need to be custom-made or obtained from abroad. Equipment breakdown insurance offers protection from these losses.
£25,000
Claim paid
£9,350
Claim paid
£2,400
Claim paid
5. Electronic equipment
Connectivity – computers, servers, systems, telecommunications and other electronics - are at the heart of today's businesses. This technology depends on surge sensitive circuitry. Businesses and business income come to a halt when computers and communication equipment goes down. Diagnostic equipment is also susceptible to power problems.
Large repair or replacement bills are common when critical systems break down. Power surges, interruption and electrical fluctuations are often the culprit – damaging sensitive circuitry. And surge protection is often inadequate. Equipment breakdown insurance protects against these losses.
In order to carry out an electrical system inspection, an insured turned off the power to all of their systems. When the power was turned back on, an electrical surge was created; causing damage to the central motherboard.
It was determined that the electrical system was not repairable, and that the hubs would need to be replaced across two sites in order to restore the system to its full working order.
£6,300
Claim paid
£2,500
Claim paid
6. Electrical
Electrical systems pose breakdown risks to building owners and tenants alike. Electrical systems present a huge loss potential since these systems constitute a sizeable percentage of a property's total value. Electrical panels and cables are all interconnected, so a short circuit in one part can spread and destroy a large part of the system.
Equipment breakdown insurance covers damage to electrical systems and other costs of a breakdown, such as the expense of renting a generator, or relocating tenants. It also covers business interruption. Service interruption also applies to tenants' income loss if the building owner's electrical system breaks down.
£42,292
Claim paid
A power surge damaged electrical equipment in a service station and car wash, including fuel pump readers, security cameras, an air compressor motor, automatic doors and various washing equipment. The car wash was closed for six weeks.
£40,817
Claim paid
The alarm at a child care centre was sounding when the centre opened, but there wasn't any information displayed on the alarm unit's screen. The unit was re-set but the display remained blank, leaving the insured unable to unable to use any of the alarm's functions.
It was determined the panel had experienced an electrical failure.
£4,300
Claim paid