Equipment Breakdown Insurance

Product
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An extension to ENCON’s Builders Risk policies, Equipment Breakdown Insurance protects against direct physical loss or damage to electrical and mechanical equipment, caused by an accident, while in normal operation after it has been installed and tested.

Eligibility

Equipment Breakdown Insurance is available for most building projects. It is available on a more selective basis, subject to submitting an application form and providing additional information as requested by the underwriter, for the following project types:

  • Manufacturing/processing plants
  • Sewage and water treatment plants
  • Cold storage warehouses
  • Power generating plants
  • Electric substations

Coverage Details

  • Policy Form – Coverage is provided through an endorsement which attaches to the ENCON Builders Risk policy
  • Policy Period – Identical to the Builders Risk policy
  • Capacity – Same full limit of insurance as for the Builders Risk policy
  • Territory – Projects in Canada only

Policy Features

  • “Object” defined: The endorsement contains a complete definition of what electrical and mechanical equipment is insured
  • “Accident” defined: The endorsement also contains a definition of what accident will trigger the policy
  • Optional coverages for soft costs and delayed opening are available, but only if these same coverages, with the same limits, have also been purchased on the Builders Risk policy to which the Equipment Breakdown Insurance endorsement attaches

Submission Requirements

  • For the majority of projects, there are no additional submission requirements; only the information necessary to underwrite the Builders Risk policy is required
  • A completed ENCON Equipment Breakdown Insurance (for Builders Risk insurance) – Supplementary Questionnaire is required for the following types of projects:
    • Manufacturing/processing plants
    • Sewage and water treatment plants
    • Cold storage warehouses
    • Power generating plants
    • Electric substations
    • Other risks with processing equipment