Your building is under construction, but its equipment is already hard at work.
A new building's electrical system, heating, air conditioning, and other major equipment may be operating for months during construction. Aside from installation and testing, the work itself depends on lighting and electricity for contractors' tools. This equipment can be damaged by mechanical and electrical breakdown. That's why you need Course of Construction Equipment Breakdown insurance. It provides added protection that may not be covered elsewhere.

Not All Insurance Is Equal
Sure, you have builder's risk property insurance, but the typical policy has similar equipment exclusions found in the standard commercial property insurance. Most policies won't cover a motor burnout, a shortcircuited electrical system, or damage caused by operator error. But these are exactly what Course of Construction Equipment Breakdown insurance covers. You need it to complete the course of construction coverage.

What Is Course of Construction Equipment Breakdown Coverage?
Course of Construction Equipment Breakdown coverage is in place during construction. It pays for repair or replacement due to accidental breakdown of insured equipment that is damaged by such things as electrical arcing, mechanical breakdown, power surges, and more. It can also be extended to include coverage during commissioning and testing.

Testing Can Be Covered
Course of Construction Equipment Breakdown insurance can also pay for testing related losses. Equipment has a higher chance of failure when it's first put into service. Any equipment that is faulty, or installed incorrectly, or is the wrong equipment for the application, is likely to fail immediately or within days.

Won't The Warranty Pay For It?
Not necessarily. Warranties have limits. They typically exclude losses caused by outside factors, such as temperature extremes, dusty conditions or improper installation. When warranties do apply, they generally don't pay for costs to remove the faulty unit and install the replacement.Course of Construction Equipment Breakdown insurance will.

Which Equipment Is Covered?
Think about the costly equipment that is part of new building.

Air conditioning
Electrical systems
Underground cables
Heat and hot water
Building automation systems.