The Insurance Services Office (ISO) Equipment Breakdown Protection Coverage Form does not have any limitations on the specific types or categories of businesses or risks that are eligible for coverage. It is available for any entity that has eligible equipment and needs the coverage it provides. It can be written either as a stand-alone policy or as a coverage part of a commercial package policy.
The ISO Equipment Breakdown Protection Coverage Form insures losses that result from the named insured’s owned equipment breaking down. It also covers equipment in the named insured’s care, custody, or control for which it is legally liable. Coverage applies whether the equipment is already being used or is connected and ready to use. Covered equipment consists of the following:
- Communication equipment.
- Computer equipment.
- Equipment designed and intended to operate under internal pressure or in a vacuum. Pressure does not include the weight of contents.
- Mechanical or electrical equipment used to generate, transmit, or use energy.
- The kind of equipment listed above that a private or public authority owns used exclusively to supply utility services to the named insured’s premises.
The following are some examples of items that are considered covered equipment:
- Diagnostic equipment (but only when noted on the declarations)
- Electric steam generators
- Gas turbines
- Moving or rotating machinery
- Refrigeration equipment
- Spare equipment and parts
- Steam boilers
- Steam engines
- Steam piping
- Steam turbines
The following property is not eligible for coverage:
- Equipment available for sale that the insured manufactures
- Equipment that is no longer useful to the insured
- Obsolete equipment
COMMERCIAL PACKAGE POLICY RATING PLAN LIMITATIONS
There are no limitations as to the types of risks that this coverage form can insure, either as a stand-alone policy or as part of a Commercial Package Policy. However, there are limitations for applying the commercial package policy premium credit or discount. The ISO Commercial Lines Manual, Division Two, Equipment Breakdown Rules provide additional information on this subject.