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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 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.

  1. 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.
  2. 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.

  3. 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.

The information provided in this article is intended for general informational purposes only and should not be considered as all encompassing, or suitable for all situations, conditions, and environments. Please contact us or your attorney if you have any questions.