What is equipment or mechanical breakdown coverage?
Q: I own a horse farm. How is equipment or mechanical breakdown coverage beneficial to me?
A: This coverage adds an additional cause of loss that may not be included in your base policy. Coverage is triggered by a mechanical, electrical, or pressure systems breakdown. With advances in technology, we often take for granted many of the everyday appliances and systems we use that could be susceptible to this risk.
- What specific items could be included in a mechanical breakdown loss?
The modern farm contains many expensive systems and appliances exposed to mechanical breakdown. This can include clothes washers and dryers, computer equipment, heat pumps, electrical panels, refrigerators, well and sump pumps, water heaters, televisions, security systems, motors, transformers, and many more.
- What coverages are included in mechanical breakdown coverage?
It includes the cost to repair property damage caused by the breakdown in equipment as well as extra expenses to maintain your business while the damaged system is being repaired or replaced.
- Can you provide an example of a mechanical breakdown loss?
The well pump motor that provides water to your farm seizes and requires replacement. Additional costs are incurred to bring in water until the pump unit is replaced. Coverage would be afforded under the policy language to replace the property damaged caused by the malfunctioning motor as well as extra expense fees associated with maintaining the business.
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Please note, the information provided is intended for general informational purposes only contact your agent or equine specialist for a coverage consultation. Coverage availability varies by state. Please refer to policy forms for coverage terms and conditions. Special thanks to Geri Hollander, Claims Manager at Markel, for contributions to this article.