A $190,833 loss would certainly raise a few eyebrows…
….even more so if the loss resulted from equipment
failure.
Chances are your fraternity facility is not properly
insured for equipment breakdown and may be left exposed to high costs of claims
if a loss occurs.
Don't get burned by gaps in your fire/property insurance
policy
Electrical, mechanical, air conditioning, and production
equipment as well as heating boilers and pressure vessels are key machinery and
equipment to concentrate coverage.
Accidents
and breakdowns that commonly happen to these kinds of devices are not covered
by most fire/property insurance policies. In fact, these policies specifically
exclude mechanical breakdown, electrical arcing or damage due to a surge of
electrical power, and explosion due to centrifugal force.
These are the very types of accidents that have the
highest probability of happening to your equipment! And that's not all. Typical
policies do not cover explosion, cracking, or burning (overheating) of steam
boilers or pipes. Uninsured gaps like these could mean big losses - and possibly
financial disaster.
Now there is a simple way to get the protection you want
Equipment Breakdown coverage, previously referred to as
Boiler & Machinery Coverage, takes the worry out of coverage gaps and, for
a typical property, costs less than you think.
In the event of an accident or breakdown to equipment, the
following will be covered:
□
Electrical
burnout of motors, electrical distribution equipment (circuit breaker box
including facility electrical wiring), and emergency generators and
transformers
□
Mechanical
breakdown of compressors, pumps, fans, blowers, and other machinery
□
Cracking or
collapse of air conditioning or refrigeration system vessels, coils, or piping
□
Explosion
of steam boilers and steam piping
□
Burning
(overheating) of boilers due to insufficient water
□
Cracking of
sections in cast iron boilers
□
Bulging,
cracking, or collapse of pressure vessels, such as water heaters, compressed
air tanks, steam cookers and kettles, expansion tanks, and condensate return
tanks
□
The extra
cost of expediting repairs
□
Damage to
other people's property in your care, custody, or control
□
Losses to
property from the release of hazardous substances caused by an accident
□
Business
Interruption protection, covering the expenses to get you back on track as soon
as possible
What else is offered?
A network of
inspectors will help expedite repairs - to get you back on line quickly.
To minimize expenses, the claim specialists can help find substitute
equipment.
To help you
operate your equipment efficiently, the insurance carrier offers maintenance
information and reference material.
Educational
Resources
Accidental loss
can and will happen, thus the necessity for comprehensive Equipment Breakdown
coverage. However, proactive maintenance of equipment and proper loss control
measures will greatly reduce the likelihood of a loss. Listed below are two
articles which detail necessary and proactive steps to help prevent and mitigate
future loss.
Are There Red Flags in Your Boiler Room? 
(pdf format)
Loss Mitigation Action Plans (pdf format)
So much coverage-for so little money! You can not afford to be without
it!
Equipment Breakdown Coverage is priced to be affordable.
And it is your best protection against the kinds of accidents that could cost
thousands of dollars in losses - losses that would not be covered by your fire/property
insurance policy.
Don't let those gaps in your current policy catch you unprotected.
How would the Equipment Breakdown Coverage help
protect you? Outlined below are claim scenarios of "accidents" which
would be covered under the Equipment Breakdown policy:
□
A chapter
house's aluminum electrical supply bus shorted out, severely damaging
electrical wires and cables. Members had to be relocated.
Property Damage: $ 118,681
Relocation Cost: $ 72,152
Total Loss: $ 190,833
□
A chapter
house's air conditioning motor breaks down during sweltering temperatures.
Ninety-plus degree weather necessitated setting up four rented "spot coolers."
Overtime was required to get the motor back on line.
Property Damage: $83,557
Extra Expense: $16,794
Total Loss: $100,351
□
The
low-water fuel supply cut-off did not operate in a chapter house's cast iron
heating boiler, resulting in a low-water condition. As a result, the boiler
suffered severe overheating with cracking of several sections.
Property Damage: $19,750
□
A chapter
house's air conditioning tubes break because of corrosion. Refrigerant leaks
into the system and damages it further
Property Damage: $31,108
□
An air
conditioner motor suffers winding burnout due to failure of the bearings.
Property Damage: $29,000
□
High-voltage
underground cable shorts to ground, causing damage to the transformer and
cutting off power to the entire chapter house.
Property Damage: $59,233
Business Income Loss: $6,776
Total Loss: $66,009
All are big
losses, but covered under the Equipment Breakdown policy.
HRH/Kirklin & Co., LLC has working with Hartford Steam
Boiler Inspection & Insurance Company (HSB) in providing Equipment
Breakdown Coverage to our clients for over 10 years. HSB is the specialist in
insurance for mechanical, electrical and pressure equipment and insures over
one-third of all boiler and machinery risks in the United States. With HSB you
are assured top-quality coverage, underwritten by a company with over a century
of experience in the kinds of problems your business faces.
THE HARTFORD STEAM BOILER
INSPECTION
AND INSURANCE CO.
The insurance engineering specialists
for property and equipment.
One State Street
Hartford, Connecticut
06102
For additional information on Equipment Breakdown Coverage
as well as helpful resources concerning coverage components, equipment risk and
exposures, as well as equipment breakdown basics, visit Harford Steam Boiler
online at www.hsb.com
A premium indication for coverage can be obtained by contacting:
Marketing
Department
HRH/Kirklin & Co, LLC.
12231 Emmet Street, Suite 5
Omaha, NE 68164
) 1-800-736-4327, extension 203
2 1-800-328-0522
fraternalinsuranceapp@kirklin.com
