Equipment Breakdown

The Equipment Breakdown Policy covers direct damage to Covered Property resulting from a “Breakdown”. Without a “Breakdown”, there is no Equipment Breakdown Coverage. This applies to:

1. Property owned by the University

2. Propety under the University's care, custody or control for which it is legally liable by agreement.

Covered Equipment:

• Equipment that generates, transmits, controls or utilizes energy, including electronic communications and data processing equipment; and
• Equipment which, during normal usage, operates under vacuum or pressure, other than the weight of its contents.

Examples of covered equipment:

• Air conditioning and heating equipment
• Water heaters and boilers
• Emergency generators
• Electric power panels
• Electric doors and locks
• Security systems & Fire alarm systems
• Elevator equipment
• Sump pumps
   

Breakdown: Direct physical loss that causes damage to “Covered Equipment” and necessitates its repair or replacement:

• Failure of pressure or vacuum equipment;
• Mechanical failure including rupture or bursting caused by centrifugal force; or
• Electrical failure including arcing or surge

Exclusions include, but are not limited to:

• Wear and tear, marring, scratching, deterioration, erosion, or corrosion.
• Additional exclusions may apply subject to policy terms and conditions.
• Misuse of equipment

Examples of equipment breakdown: 

• Electrical arcing
• Power Surge
• Motor burnout

To successfully file a claim under the equipment breakdown policy, we will need to provide as much information as possible to the insurance company, including:

• Description of property involved, including location.
• Description of how, when and where the loss or damage occurred.
• Photographs or videos, if possible.
• Take whatever measures are necessary to protect the property and premises from further damage.
• Permit inspection of the property, including taking samples of damages and undamaged property for inspection, testing and analysis.
• Keep records of all correspondence and receipts

Additionally after the claim is setup, we will need to provide: Internal Reports, Recent Equipment Service Records, Technician’s Report, Diagnostic Report, Estimate of Repairs, Proposal for Repairs, Bid Tabulation (if necessary), Final Repair Invoice(s), Change Order(s) (if available), Agency Purchase Order(S), Payment Requisitions, and Proof of Payments, etc.

Once an investigation has taken place and the insurance field adjuster has looked at the equipment, you will be notified of the coverage determination for the claim.  

Note:  We must preserve all property pending the outcome of the investigation, including repaired or replace equipment.  Failure to preserve the this covered property could result in coverage denial.