Think about the impact if equipment your clients depend on for telecommunications, e-mail, e-commerce, heat and hot water broke down? The increased reliance upon equipment for operations and income has made more equipment “mission critical.” As a result, equipment breakdowns that interrupt operations often result in business income loss.

Consider this:

An apartment complex’s aluminum electrical supply bus burned out, severely damaging electrical wires and cables. Angry residents had to be relocated to temporary housing.
Equipment Repair Cost: $118,681
Relocation Cost: $72,152
Total Loss: $190,833

Electrical power supply voltage fluctuation caused two telephone system terminal boards to burn out.
Total Loss: $52,500
Common risks such as power surges and fluctuations in electrical current can threaten multiple systems simultaneously. A power surge might not just damage computers, but phone systems, security alarms and other electronic business equipment all at the same time. Electrical system breakdowns and resulting fires are a leading loss driver across all types of occupancies.

Property insurance does not cover costly equipment breakdown

While your clients property insurance may be very broad but it was not designed to insure for the unique technical causes of equipment breakdown. If power surges, electrical arcing, mechanical breakdown, centrifugal force cause a breakdown, your client may be left with losses beyond just the cost of replacing the equipment.

Equipment Breakdown Coverage from American European can provide coverage for these types of losses and should be part of an insurance program for any business.

Why Preventive Maintenance Is More Important Than Ever

Along with having Equipment Breakdown coverage from AE in place for these types of losses , there are loss prevention steps we recommend to reduce the likelihood of loss. Electrical system maintenance increases safety and decreases losses. Your clients can reduce their risk of fire, equipment breakdown, business interruption, equipment inefficiency and premature wear-out with a preventive maintenance program.

We offer this Electrical Preventive Maintenance Checklist for you to share with your clients as a guideline for implementing a Preventive Maintenance program at their business.


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