Auto Service
Facilities
Six Reasons Why You Need Equipment Breakdown Insurance
Electrical distribution systems
1 Equipment You Depend On
Your auto service business contains all kinds of costly
equipment — equipment and services that you depend on for
Every building has transformers, electrical panels and cable
structures. Your operations depend on electricity. Dirt and
dust can increase the risk of a short circuit and arcing damage
your livelihood. These include air compressors, ventilation
to the system.
and air filtering systems, electronic diagnostic, alignment and
frame straightening equipment, car washing facilities and even Ventilation/Air filtering systems
your electrical distribution system. A lot of this equipment Ventilation and air filtering systems are needed to discharge
depends on sophisticated electronics, which are particularly auto fumes and are essential for any kind of painting opera-
prone to breakdown. And how would you operate if you had tion. Fans and motors under continuous use are prone to sud-
no electrical power? den breakdown.
Electronic diagnostic equipment
2 Equipment Breakdown Insurance Covers
More Than Just Repairs
This equipment can be worth tens of thousands of dollars. Its
electronic circuitry and computer components are sensitive to
heat, moisture and power surges.
Equipment Breakdown insurance helps protect you from the
Business equipment
costs associated with covered losses to your facility’s equip-
Cash registers, phones, charge card telecommunications as
ment. It pays for:
well as inventory control systems contain sensitive electronic
Direct property loss the cost to repair or replace dam- circuitry that is especially prone to breakdown.
aged equipment;
Lost business income and costs for temporary replace-
ment equipment;
Other expenses incurred to limit the loss or speed restora-
5 Mandatory Jurisdictional Inspections
Most states and local governments require jurisdictional
inspection of boilers and pressure vessels. With HSB provid-
tion of your operations; ing these services, you can avoid local inspection fees in a
The loss value of spoiled products or materials; majority of jurisdictions. Only the certificate fee would be
your responsibility.
Business recovery expenses.
Equipment Breakdown insurance covers the physical damage
and the financial damage that stems from an insured
equipment breakdown. It’s the bottom-line protection essen-
6 Typical Losses
The following are actual losses and the coverage provided
for auto services businesses like yours:
tial for today’s auto repair businesses.
A power surge damages a service station’s electronics, includ-
3 Protection against Damage
Caused By:
ing the computerized diagnostics system, telephone, paging
system and the security system.
Total Loss: $ 33,388
Short circuits/electrical arcing Power surges
Mechanical breakdown Motor burnout A valve on an air compressor pump breaks while the air com-
Boiler breakdown pressor is running. The pressure causes oil to spew out in a
mist, covering everything. The smell causes the occupants to
feel ill.
4 Equipment Breakdown Insurance
Covers Many Types of Equipment Total Loss: $ 20,849
Air compressors and air tanks A pump burns out suddenly at a car wash. Several hours pass
Air compressors which support multiple applications, includ- before it is repaired. Customers are asked to come back
ing car lifts, air tools and tire inflators are subject to wear. Air another time; many never do.
tanks are subject to corrosion. Air tanks normally require a Total Loss: $ 4,840
jurisdictional certificate inspection.
This Summary gives general information. For all coverages, conditions and exclusions, refer to the policy. GS9054-29AN (PC) 5/00