When Do I Quote MECHANICAL BREAKDOWN

insurance1822

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I recently picked up some direct appointments for commercial & I'm quoting (3) lessors risk only mixed use buildings. How and or why would they need mechanical breakdown coverage?
 
is this included in equipment breakdown or a separate coverage?

Furnace/air conditioner comes to mind right away
 
is this included in equipment breakdown or a separate coverage?

Furnace/air conditioner comes to mind right away


My carrier has the option to add it for like $150/year. So what..if their furnace or AC just breaks down they'll pay to fix it?
 
My carrier has the option to add it for like $150/year. So what..if their furnace or AC just breaks down they'll pay to fix it?

You would have to read the specific form from your company but most equipment breakdown policies exclude wear and tear.
 
It's basically the new version of boiler and machinery, just broader coverage.

I wouldn't leave this out with lessors risk. A lot of mechanical issues can happen in a building that could cause tenants not being able to occupy their units that may not be covered without this coverage.

Could leave you open to a potential E&O claim.

Who did you end up picking up?
 
I saw a monster claim once when the AC unit on a hotel broke down. All the quests left. It took 2 weeks to get another one installed on the roof. I think it was a 7 figure claim.
 
That brings up a good point. Its maybe not about the equipment breakdown fixing whatever broke but using it as the loss to trigger business income coverage.
 
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