Endorsements

Equipment breakdown coverage in admitted P&C products

Coverage intent

Equipment breakdown coverage addresses covered loss from mechanical, electrical, pressure, or similar breakdown events affecting covered equipment.

Coverage impact

Equipment breakdown wording affects property, businessowners, and package products because breakdown events can trigger property damage, business income, extra expense, spoilage, and service interruption provisions.

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Sample form language

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Equipment Breakdown Coverage Part

Form #: CO 1400CP 03 24

Alaska National Insurance Company

Boiler and Machinery or Equipment Breakdown

GA | Jun 30, 2026

This coverage part defines the accident trigger for equipment breakdown coverage, including mechanical, electrical, boiler, and pressure-related events.

Equipment breakdown accident trigger

"Accident" means a fortuitous event that causes direct physical damage to "covered equipment". The event must be one of the following:
a. "mechanical breakdown", including physical damage caused by centrifugal force.
b. artificially generated electrical current, including electrical arcing, that damages electrical devices, appliances or wires.
c. explosion, other than combustion explosion, of steam boilers, steam engines, steam piping or steam turbines.
d. sudden physical damage not otherwise excluded occurring inside:
1) steam boilers, steam engines, steam piping or steam turbines; or
2) hot water boilers or other equipment used to heat water.
e. bursting, cracking or splitting.

However, this does not include any bursting, cracking or splitting associated with an explosion, unless such explosion is an "accident" as defined in c. above.

Selected excerpt from this form.

Notable language points

  1. 01Uses direct physical damage to covered equipment as the threshold.
  2. 02Lists mechanical breakdown, electrical arcing, boiler or vessel events, and bursting or cracking.
  3. 03Clarifies that some bursting, cracking, or splitting events are excluded unless tied to a defined accident.

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