Equipment Breakage insurance

Protect
Your Machines and Equipment
To the Maximum

It is common for insurance contracts to exclude pressure objects and mechanical or electrical failures. The additional endorsement for equipment breakage completes your underlying coverage and can be added to your commercial insurance policy or to a separate policy.

Insurable Equipment

There are three main categories of objects covered by this endorsement:

• Pressure Devices (Boilers, air conditioners, compressors, etc.)
• Mechanical Equipment (compressors, pumps, turbines, transformers, electric panels, etc.)
• Electrical Equipment

The endorsement covers your equipment, whether it is fixed or mobile, being used or stopped, or during assembly, shifting or dismantling operations in order to proceed to their maintenance, repair, revision or inspection.

The mobile equipment is covered by this endorsement only during the time it is being used, meaning only on the worksite.

• The production machines must be covered by a special clause or endorsement
• Mobile equipment such as elevators or vehicles are excluded
• Electronic machines such as computer or photocopiers can be added to the policy

Because there are many types of equipment, it is very important to read you contract closely to confirm that all your property is covered by your insurance policy.

Basic Coverage

In order for an accident to be covered, there must be:

• A sudden or accidental failure or fault
• This failure or fault must cause immediate damage to the insured object
• The damaged object must be repaired or replaced

The basic coverage guarantees the replacement value or the price of parts and labour if it is inferior, in case of the following unforeseeable or sudden events:

• Clumsiness, occasional negligence, inexperience, vandalism or malice
• Fall, collision, introduction of a foreign object
• Manufacturing, construction of assembly defect
• Vibration, faulty alignment, loose parts, irregular tension, material fatigue or overspeeding
• Failure of a connected machine or of a protection or regulation device
• Temperature rise, seizure, accidental lack of lubrication or liquid, inrush of water or overheating
• Effects of electric current
• Wind, storm, frost

Optional Coverage

The optional coverage is for:

• Theft, Fire
• Damage to the base or foundations of the machines or other objects
• Demolition and Reconstruction Fees
• Additional Costs of Repair Work Outside the Normal Work Hours
• Expenses Linked to Foreign Technicians
• Fees for Quick Transport

If you own equipment or machines of great value, Lareau Insurance Brokers recommend you choose this protection.

To learn more, make an appointment with one of our brokers.