equipment breakdown insurance
Coverage for loss due to mechanical or electrical breakdown of nearly any
type of equipment, including photocopiers and computers. Coverage applies to
the cost to repair or replace the equipment and any other property damaged by
the equipment breakdown. Resulting business income and extra expense loss is
often covered as well. Equipment breakdown insurance is increasingly replacing
traditional boiler and machinery (BM) insurance, in part simply because the title
is more descriptive of the coverage provided. Also, today's equipment breakdown
policies typically provide slightly broader coverage than traditional BM policies, and they usually do not use the specialized terminology
found in traditional BM policies.
See also: all risks coverage,
business income coverage,
commercial property policy,
property insurance.
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CPI XI.B