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Building Management Hawaii April/May - (Page 24)

Equipment Breakdown Insurance Why it’s important to you and your building. By Michael Ayson E quipment Breakdown Insurance (aka boiler and machinery insurance) is important because your building depends on functioning equipment. Damage or a breakdown of your equipment could create a costly hassle if you are not properly insured, as standard property insurance will not cover these types of losses. Equipment Breakdown Insurance can cover you in the event of damage or a breakdown. Why are breakdowns a problem? Though technology provides a host of invaluable features, it also poses many risks. Circuitry on high-tech equipment is sensitive. A force as simple as static from bubble wrap can damage certain pieces of equipment. Obtaining parts to fix complex equipment can be difficult and time consuming. Equipment may be located in areas of the facility that are difficult to reach, complicating repairs and concealing problems. Breakdowns can cause inconveniences such walking up several flights of stairs and dealing with uncomfortable temperatures. Interconnected but separate technologies can affect one another after a power surge or loss of functionality. What are the most common equipment breakdowns? How could they impact you? There are five major types of equipment breakdowns. • Electrical Systems. Electrical systems make up 10 to 15 percent of a building’s worth. A short circuit in a transformer, panel or cable can spread and destroy a large part of the system. These parts are often overlooked and underserviced. What Does Equipment Breakdown Insurance Cover? It is important to understand the coverage you receive with your specific equipment breakdown policy. Typically, the following is covered under an Equipment Breakdown policy: • Property Damage: Cost to repair or replace damaged equipment due to an accident insuRance • Off-Premises Property Damage: Covers portable equipment damaged away from the covered location • Business Income: Covers the loss of income as a result of a covered accident until equipment is repaired or replaced. It also allows for additional time after repair or replacement to ensure that the business is operating at full capacity • Contingent Business Income: Covers income loss after an equipment breakdown at an essential customer or supplier location • Extra Expense: Covers additional expenses used to keep the business going after a covered loss, such as equipment rental fees • Service Interruption: Covers business income and extra expenses after a breakdown at a supplier with whom the insured has a contract. Services such as waste disposal, 24 April - May 2013 BMH air conditioning, refrigeration, gas, compressed air, water, electrical power and communications are often included • Perishable Goods: Covers food spoilage, manufactured goods or other perishable items after a covered incident • Demolition: Covers costs associated with demolition • Ordinance or Law: Covers costs associated with complying with building codes and laws (other than demolition) • Expediting Expense: Covers the temporary or permanent repairs necessary for basic business activity • Hazardous Substances: Pays to clean, repair or replace areas that are contaminated by hazardous substances released in a covered loss • Data Restoration: Pays for the restoration of lost or damaged data • Newly Acquired Locations: Pays for damage to newly acquired locations • Brands & Labels: Reimburses for the loss when having to sell a damaged product for less than retail price

Table of Contents for the Digital Edition of Building Management Hawaii April/May

Lifts: Elevators & Escalators
Service Providers Leverage Cutting-Edge Technology
Time To Modernize?
Ready To Switch Gears?
Concrete: Restoration & Repairs
When To Test For Lead
3 Steps For A Solid Spalling Job
Deep Secrets
Phase The Work
Concrete Restoration
Tips On How To Reduce Spalling On Newer Buildings
The Difference Between Repair & Restoration
Equipment Breakdown Insurance
High-rise Hotspot
Toolbox Talk: How to choose the correct ladder for the job.
Industry News and Movers & Shakers
On Site: Saving Staff

Building Management Hawaii April/May